In a surprise move, the government yesterday hiked prices of diesel, petrol and octane by Tk 1 per litre in the fuel-hungry northern region to compensate traders due to increased carrying cost.
The decision was taken as traders are now carrying the petroleum products from Dhaka and Khulna instead of Baghabari in Sirajganj to the northern region in peak irrigation season.
The fresh hike will remain in force for 15 days and the government will then review the situation.
"There is no scarcity of kerosene. But you bring diesel, petrol and octane to the northern region from wherever you can and charge Tk 1 more per litre," a desperate energy adviser Mahmudur Rahman asked fuel traders at an emergency meeting at his office.
The fuel price hike came at a time when the government is repeatedly assuring that there will be no immediate fuel price hike.
With reference to the government commitment to the IMF about adjusting petroleum prices, Finance Minister Saifur Rahman told journalists yesterday that the latest government move did not mean raising fuel price from now. "Fuel price could be enhanced in six months or one year. It is not a static matter," he said.
Earlier, at a meeting in Moulvibazar late last month, Saifur had said,"We are not increasing oil prices at this moment."
Owners of filling stations and tank lorries and Bangladesh Petroleum Corporation (BPC) officials attended yesterday's meeting amidst reports from the predominantly agricultural northern region that boro cultivation is being severely affected due to irrigation problem owing to supply shortage of diesel and power.
While traders blamed the government for its failure to ensure adequate fuel supply in the market, the energy adviser pointed his finger at smuggling of petroleum products across the border and convened a meeting tomorrow to combat the menace.
Mahmudur Rahman attributed the current fuel problem to non-operation of Baghabari oil depot due to loss of navigability of the adjacent river and switching over of many power-driven irrigation pumps into diesel-run ones.
Our Bogra correspondent Hasibur Rahman last night reported that over 300 tank lorries used to carry fuel from Baghabari daily but barely 50 lorries now carry that from the makeshift Kazirhat depot, which is too meagre to meet the demand in the entire northern region.
The energy ministry decided yesterday that petrol pump owners in the northern districts from now on would be allowed to take fuel from any depot in the country to meet the demand and meet the additional transport cost from the increased price.
It was also decided that Khulna petroleum depot would operate as the principal source for supply of fuel to the northern region until the situation at Baghabari depot improved.
At the meeting, leaders of Bangladesh Petroleum Dealers-Distributors Agents and Petrol Pump Owners Association blamed government inefficiency for the fuel crisis during the peak boro cultivation season.
They denied allegations of hoarding by petrol pump owners, saying that during the last couple of weeks they could provide only 60 percent of fuel needs in the region due to supply shortage.
Petrol pump owners said the average daily demand for diesel in the northern region has increased to 17,000 tonnes from 10,000 tonnes due to the switchover of power-run irrigation pumps to diesel-run ones.
Mahmudur Rahman said 80,000 tonnes of fuel is in government stock right now, the BPC refinery has 30,000 tonnes and another 1,20,000 tonnes are in pipeline to add the stock.
He attributed at least 30 percent of the rise in diesel demand to power shortage.
Meanwhile, Agricultural Affairs Secretary of the main opposition Awami League Dr Abdur Razzak, MP, resented the latest price hike of fuel, particularly diesel, when boro growers badly require it for irrigating their cropland.
"Even the slightest price rise of diesel would hit hard the farmers who are already in distress due to continued shortage of diesel and erratic power supply from the very onset of peak boro season," he said.
Power Secretary ANM Akther Hossain said the Power Development Board (PDB) yesterday spoke of a serious crisis in running power plants because of acute fuel crises in the northern region.
Our Dinajpur correspondent Kongkon Karmaker reports that 3,37,000 litres of diesel, 2,17,000 litres of kerosene and 17,000 litres of petrol are in stock at Parbatipur depot. It can store 12 lakh 60 thousand litres of petrol, 12 lakh 60 thousand litres of diesel and 12 lakh 60 thousand litres of kerosene.
Scarcity of diesel is more acute in bordering districts where farmers are restricted from procuring diesel despite getting certified by local Union Parishad chairmen that they would use it for irrigation purpose. Suspicion of smuggling mounted the miseries of boro farmers.
Our staff reporter in Rajshahi Anwar Ali reports that the entire district went almost without diesel in the last two days but traders hinted at fresh supply from today.