Commerce Minister Khandakar Abdul Muktadir has described the recent increase in fuel prices in Bangladesh as “modest,” telling Parliament that it is unlikely to significantly push up inflation despite ongoing global market volatility linked to tensions in the Middle East.
He made the remarks on Monday in Parliament while responding to a supplementary question from independent lawmaker Rumeen Farhana (Brahmanbaria-2).
The minister said that although global fuel prices have risen sharply, Bangladesh has seen only a controlled and relatively limited adjustment.
He added that in several countries, including the United States, fuel prices have increased significantly due to market fluctuations and tax-related factors, in some cases exceeding $5 per gallon from previous levels of around $2.70-$2.80.
Muktadir stressed that in Bangladesh, fuel pricing is not automatically linked to global rates and is instead carefully regulated by the government to maintain economic stability.
He noted that fuel expenses account for only around 7-8 per cent of production costs in the manufacturing sector, meaning the overall impact on product pricing remains limited.
Explaining the inflationary effect, he said that even in transportation, the cost increase per unit of goods is marginal. For example, a bus travelling 200 kilometres uses roughly 25-30 litres of diesel, and even after price adjustments, the added cost per kilogram of transported goods remains minimal when distributed across large cargo loads.
He further stated that while fuel price hikes may appear significant, their direct contribution to inflation is relatively limited compared to common perception.
The minister assured Parliament that the government is maintaining a cautious and balanced approach in adjusting fuel prices in line with global trends.
He said this strategy aims to preserve macroeconomic stability while avoiding excessive pressure on consumers.
Muktadir also confirmed that the government is closely monitoring inflation trends and will take necessary steps if required to keep prices under control.
