Fuel price rise drives up costs of everyday essentials

Recently the price of all types of fuel oil in the country rose by Tk 20 per litre. The impact of this significant hike was felt in the capital’s market for essential commodities on the very first Friday following the increase. 

Prices have risen for various vegetables, eggs, powdered milk, flour (both whole wheat and refined), fish and various fruits. 

Although the prices of meat and chicken remain unchanged, consumers are feeling the strain of the overall price surge. This scenario was observed during visits to various fresh produce markets in the capital this Friday morning.

Compared with last week, the retail price of almost all types of vegetables has increased by Tk 15 to Tk 20 per kilogram. Sellers attribute this rise to increased transportation costs resulting from the hike in fuel prices.

A visit to the Mirpur-1 kitchen market revealed an increase in the price of brinjal. Long brinjals are currently selling for Tk100-120 per kilogram, depending on the market; a week ago the same variety sold for Tk 90–100. 

The price of bitter gourd, which had previously dropped to Tk 60–80, has now risen to Tk 80–100 per kilogram, depending on quality. 

Prices for small-sized pointed gourd (patal) and ladies finger have climbed to Tk 60–80 per kilogram, up from Tk 50–60 just a week ago.

Additionally, prices for vegetables such as ridge gourd (jhinga) and sponge gourd (dhundul) have increased by Tk 10 to Tk 20. 

However, raw papaya continues to sell at Tk 30 per kilogram, and green chillies remain at their previous price point.

Vegetable vendor Russell Hossain stated that transportation costs have risen, leading to higher prices at the wholesale market. 

Another trader Mizan explained that brinjals are transported from Jashore to the capital’s Karwan Bazar. Wholesalers used to procure them at approximately Tk 70–Tk80 per kilogram. 

Before the fuel price hike, the rental cost for a medium-sized truck was Tk 18,000; following the hike it has risen to Tk21,000. 

Consequently, brinjals are now selling for over Tk 100 per kilogram at Karwan Bazar itself. Rising fuel costs have led to increased expenses for fish transportation. According to vendors, each truck incurs an additional cost of Tk 8,000 to Tk10,000. Consequently, fish prices have risen by Tk 50 to 80 per kilogram. The price of hilsa fish has also gone up.

Much like last week, broiler and Sonali chickens are selling for Tk 180 and Tk 320 per kilogram respectively. However, the price of layer chicken has increased by Tk 20 per kilogram, bringing the selling price to Tk 350. 

Last week white broiler eggs sold for Tk 140 per dozen, while brown eggs sold for Tk 145 to 150 per dozen. Today white broiler eggs remain at Tk 140 per dozen, but the price of brown eggs has risen to Tk 150–155 per dozen—an increase of Tk 5 at both the minimum and maximum price points.

There has been no change in the prices of beef and mutton; beef continues to sell at Tk 800 per kilogram and mutton at Tk 1,250 per kilogram. So far the hike in fuel prices has not significantly impacted the price of rice.

The price of pasteurised liquid milk has increased. Recently several private marketing companies raised the price of milk by Tk 10 per litre. Prior to this the state-owned enterprise Milk Vita had also raised its price by Tk 10 per litre; private companies subsequently followed suit.

Meanwhile, the prices of whole wheat flour and refined wheat flour are also higher than before. 

A survey of markets in the capital—including Nakhalpara, Mohakhali, Kolmilata and Karwan Bazar—revealed that packaged flour is retailing at Tk 70 per kilogram, while maida is selling at Tk 80 per kilogram. Just a week ago the prices were Tk 60 and Tk 70 respectively; thus the price for both has risen by Tk 10 per kilogram.

However the rates for loose (unpackaged) flour and maida are slightly lower, selling at Tk 50–Tk55 and Tk 65–Tk70 per kilogram respectively. Within a span of five to six days the prices of whole wheat flour and maida (refined wheat flour) have also risen by Tk 5. 

Bikash Banik, proprietor of KB Store at the Mohakhali kitchen market, told Daily Samakal that the prices of these flours had previously increased a month or a month and a half ago, and have now gone up again. 

The retail prices printed on the newly introduced two-kilogram packets from the companies are Tk 140 and Tk 160 respectively.

Fruit prices in the market have risen. Malta and oranges are selling for Tk 420–Tk450 per kilogram, while apples are priced between Tk 340 and Tk 360. Buyers are paying Tk 400–Tk450 per kilogram for red grapes. Traders attribute the price hike to the increase in fuel oil prices.

Dr Khondaker Golam Moazzem, president of the private research organisation Knowledge Hub Institute, told Daily Samakal that a rise in fuel prices does not automatically mean commodity prices must rise—nor is it something that simply has to be accepted without question. 

The Bangladesh Trade and Tariff Commission should promptly present an analysis regarding what the fare per kilometre should be and how production costs for various goods might be affected by the fuel price hike.

Elaborating on the matter, Moazzem stated that the Commission needs to specify, for instance, that transporting vegetables from rural areas to Dhaka might incur an additional cost of five or ten poisha. 

If agencies under the Ministries of Agriculture, Food and Commerce—which are involved in market operations—monitor the market based on such data, it would yield positive results; having this data available would also make traders more cautious about raising prices, he added.

Md Zahirul Islam, director general of the Directorate of National Consumer Rights Protection, told Daily Samakal: “We are hearing reports that the impact of the diesel price hike on commodity prices is greater in some instances than it should be. However, we will not allow traders to exploit this situation. We will not permit excessive profiteering—such as doubling prices under the pretext of a 25-paisa-per-kilogram increase in transport costs.”

Zahirul Islam added, “We are monitoring the market daily, observing the extent of increases in transport fares and commodity prices. We are gathering information from various sources, and our surveillance will be further intensified.”