Research organisation Centre for Policy Dialogue (CPD) has said high price of fuel oil has been imposed on the people as energy sector agencies have failed to rein in corruption and wastage.

The organisation said the price hike of fuel oil could have been avoided either by withdrawing tax on fuel oil or by reducing tax. But this is a big source of income of National Board of Revenue and they would not do this, CPD added.

The research organisation on Wednesday made such an observation in an article 'Unusual price hike of fuel oil: could it be avoided now?'. CDP organised a press conference at its Dhanmondi office.

The organisation described subsidy as waste of resources as it benefits both rich and poor. The subsidy must be stopped, be it under IMF conditions or not. It, however, could be done slowly.

Urging the government to review the price of fuel oil, the CPD said a price hike of 42 per cent to 52 per cent is unprecedented in the context fuel oil price. The economy is under a severe pressure due to domestic and global issues. When the people are being affected in various ways, such a price hike will help the inflation swell further.

The low and fixed income people would suffer the most as prices of all commodities would go up due to the price hike. Imports will increase if agricultural production in the country decreases. At the same time, exports will decrease if industrial production is disrupted, noted the CPD.

Ejaz Ahmed, a former professor of Bangladesh University of Engineering and Technology (BUET), said he supports withdrawal of subsidy, but not the way it has been done. The government may withdraw tax on fuel oil during the worst economic crisis. Rather, an indirect tax has been imposed on the people by hiking prices, which is a terrible discrimination. The poor will suffer severely when nothing will happen to the rich.

The CPD noted that state-owned Bangladesh Petroleum Corporation (BPC) made a profit of Tk 468.58 billion in the last eight fiscal years until May this year. The government collects tax from fuel oil at a rate of 34 per cent, in addition to annual profits. Moreover, it has taken a surplus fund of Tk 100 billion from the BPC treasury.

While presenting the article, CPD executive director Fahmida Khatun said many people are yet to recover from the impact of Covid-19 pandemic. Some of them are still living on their savings. Instead of arranging a relief, a pressure is being created on them.