If petroleum price is cut by 10 percent, the country’s GDP will go up by 0.3 percent, estimates the Centre for Policy Dialogue (CPD), a civil society think tank.
CPD’s review report, ‘State of the Bangladesh Economy in FY2016’, released on Sunday said if oil price comes down, the country’s inflation will cut by 0.2 per cent, RMG export will increase by 0.4 per cent, household consumption will go up by 0.6 per cent, and government savings will come down by 0.4 per cent.
Making a power-point presentation on the review report at city’s BRAC Centre Inn, CPD research fellow Towfiqul Islam Khan said general people will be benefited with the oil price cut.
He said domestic prices of petroleum products have not been adjusted within the declining trend in international market price since January 2013 while India adjusts its local price regularly with the international ones.
After the incurring of losses for 15 years in a row, the CPD researcher said, Bangladesh Petroleum Corporation (BPC) made a profit of Tk 52.63 billion(5,263 crore) in fiscal 2015-16.
It is expected with the same level of international petroleum price and unchanged selling prices in domestic market, BPC’s profit may go up to Tk 110 billion, he said, adding there is a strong demand from stakeholders for reducing petroleum prices.
Speaking on the occasion, CPD fellow Dr Debapriya Bhattacharya said CPD suggests adjusting fuel oil prices as general people as well as businessmen will get benefits from it.-Asfar