Bdnews24.com

The chief adviser's special assistant, M Tamim, Sunday stressed keeping up subsidies to farmers despite any hike in fuel prices.

"In developing countries, the agriculture sector is given subsidies on diesel. We must give subsidies to the agriculture sector in our country," Tamim told reporters in his office.

Tamim, who oversees the power, energy and mineral resources ministry, said: "It will be impossible for us to import fuel on loan if prices are not adjusted."

"The amount of subsidy may exceed Tk 10,000 crore if we continue to pay subsidy this way. Our projected estimate for subsidy this year was up to Tk 7,000 crore," he said.

He said the price of refined oil on the international market rose to $155 a barrel. "We bought the same fuel at $145 last time."

A litre of diesel that cost Tk 75 sells at Tk 40 in Bangladesh.

"We pay the highest subsidy in diesel. But the use of octane dropped," he said.

"Bangladesh needs 24 lakh tonnes of diesel a year. It is no longer possible to subsidise diesel this way," the CA's assistant said.

Tamim said the government had not yet taken any decision on hiking the fuel price.

Earlier, finance adviser AB Mirza Azizul Islam had said that there was no alternative to increasing fuel prices to match the prices on the international market.

On Sunday, Tamim said: "A final decision on when the price will be hiked at what rate will be taken after having talks with the people concerned."

He warned that any oil price hike would influence the prices of all products. "In the backdrop of an increase in oil prices, reasonable prices of essentials have to be ensured."

He stressed a meeting with business and civil society representatives to discuss the matter.

Tamim expressed concern over what he said was smuggling of fuel. "It is a big problem. Fuel is being smuggled out to the area where the price is relatively high."

The CA's assistant said fuel import hardly rose. Annual demand for fuel averages 37 lakh tonnes.

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