Dhaka: Bangladesh government will not drop fuel prices indicating the oil price is on the rise in the world market.

State Minister for Power, Energy and Mineral Resources Nasrul Hamid on Saturday came up with the remark while talking to NTV saying ‘The fuel price will not be cut for now because oil price is boosted in the world market. It was US$ 32 and it’s now US$ 52. It may increase again according to a World Bank report.’

Decision about reducing fuel prices, Finance Minister AMA Muhith said, ‘Oil price is reduced for cutting the price of furnace oil and we have reduced other oil prices. If the oil price is cut a little, it’s good for the economy.’

Analysts argued against the government’s decision. Bangladesh Institute of International and Strategic Studies (BIISS) research director Dr. Mahfuz Kabir said, ‘The oil price was US$48 when the finance minister declared the oil price would be cut in December or January. The price is slightly increased and it’s not logical to be strict not to cut the price. The price always fluctuates. When the price was decreased greatly in the world market, we had to take the option to reduce the price. We should drop the oil price keeping in mind that we will go from seven to eight percent growth in the next fiscal year.’

In January 4, 2013, when the oil price was increased in the domestic market, the world market price was US$ 120 per barrel. In 2014, the price had been dropping and it was reduced to US$ 30 per barrel in the mid of the year.

But Bangladesh government did not cut the oil price. The government decided to decrease the price in 2016 facing widespread criticism. The new price rate was executed on April 4, 2016, along with the decision to decrease it in two steps.