State Minister says government is spending Tk167 crore daily on fuel oil subsidies

The government is spending Tk167 crore per day to subsidise fuel oil in order to keep prices affordable for consumers amid supply disruptions in the Middle East, State Minister for Energy and Mineral Resources Aninda Islam Amit said on Friday.

Speaking as a guest at a social welfare programme, he said the government remains committed to continuing the subsidies and has no plan to raise fuel prices.

The event, held at the Jashore deputy commissioner’s office, was organised by the Department of Social Services to distribute donation cheques among underprivileged and destitute individuals.

The state minister also noted that the country currently has sufficient fuel reserves to meet demand through April, while efforts are underway to secure supplies for up to 90 days.

He pointed out that fuel demand has surged unusually in recent days. Typically, daily diesel demand in March stands at around 12,000 tonnes, but ahead of Eid-ul-Fitr, supply had to be increased to 24,000–25,000 tonnes to meet the spike.

Despite many countries raising fuel prices due to shortages triggered by the Iran crisis, Bangladesh has refrained from doing so, he added.

He further said that increases in fuel prices would drive up the cost of electricity, transport, and essential goods, placing additional strain on consumers. To ease public hardship, the BNP-led government has opted to maintain subsidies and avoid price hikes.