A record hike in fuel oil prices in Bangladesh on Friday (5 August) night has led truckers to enforce unofficial strikes resulting in severe disruption in goods transportation across the country.
The majority of the truck drivers remain idle since the price hike, as they say, running the wheels will cause financial loss to them unless the fuel oil prices are lowered again or rent is increased officially.
Some truck drivers are charging an extra 25% to 30% to meet up the costs arising due to the fuel price hike.
On Friday night, the Bangladesh government increased diesel price by 42.5%, kerosene price by 42.5%, petrol by 51.1%, and octane by 51.7% to lower subsidy burden amid ongoing global financial crisis, including faster depletion of foreign currency reserve.
Under pressure from the public transport owners, the government increased bus fair while raising water transport fares is underway.
However, the government is yet to sit with the other modes of transport including truck, covered vans, and lorries that carry goods across the country.
The tank lorry owners association and fuel oil dealers have enforced 24 hours strike from Sunday morning after the fuel oil price hike, demanding dealer commission increase and fare hike. They suspended the supply of fuel oil in 14 districts in southern Bangladesh.
Wazi Ullah, general secretary of Bangladesh Truck Driver Workers Federation, said that at least 20% of truck owners kept their vehicles sitting idle failing to cope with increased fuel oil prices.
He added truck owners and drivers are now jointly working to fix base fares to which the government will add increased costs from time to time when fuel prices and other costs go up.
“We will go to the Prime Minister this time to press our demand as our back is now reached to the wall,” pointed out Ullah.
Businesses fear a severe impact of the fuel oil price on the economy on both the domestic and international front as freight rates will go up significantly.
Bangladeshi garment exporters said they will incur huge losses in ongoing work orders which were negotiated keeping in mind the previous price of fuel oil, transportation, and overall production costs.
Faruque Hassan, president of Bangladesh Garment Manufacturers and Exporters Association, noted that fuel oil price hike will lead to transportation cost and production cost hikes alongside raising inflation pushing for raising workers’ wages.
“Many factories will face closure to avoid huge financial losses,” he highlighted.
The Dhaka Chambers of Commerce and Industry (DCCI) said 90% of transportation in Bangladesh is dependent on diesel while vehicles that are powered by octane and petrol will also have to bear the increased cost.
“This will also hike the domestic freight cost and eventually will lead to the cost of necessities across the country,” said DCCI.
Sharar Nayel
Asia Correspondent
