By Afshain Afzal
Tens and Thousands of angry protesters in Bangladeshis took to the streets in protest against the government's decision to increase fuel prices by nearly 52 per cent amid shrinking foreign reserves. The Bangla Government increased petrol prices by 51.2 per cent to $1.38 a litre, 95-octane gasoline by 51.7 per cent to $1.44 and diesel and kerosene by 42.5 per cent.
In a statement on Tuesday, 9 August 2022, state minister for power, energy and mineral resources, Nasrul Hamid, “The new prices will not seem tolerable to everyone. But we had no other choice. People have to be patient.” The angry masses on the streets have rejected Government's excuse for increase in prices due the condition of the global market in the wake of Russia's war in Ukraine. The inner circles of the Government are saying that the Government of Sheikh Hasina is fulfilling the prerequisite to have an International Monetary Fund (IMF) loan.
It is pertinent to mention here that the fuel crisis in Bangladesh has led to electricity blackouts of up to 12 to 17 hours a day. The situation in Bangladesh has been tence since Government announcement of fuel prices hike and masses as well as the leaders of the allies of the ruling Awami League are criticising the Sheikh Hasina's move publicly.
After the fall of foreign exchange reserves at $39.67bn on 3 August, the Bangladeshi Government has also banned the import of luxury goods and put restrictions on fuel imports including liquefied natural gas (LNG) which resulted in shutting down diesel-run power plants.
Bangladesh has sought a $4.5 billion loan from the IMF. The fact cannot be denied that where the export earnings of Bangladesh was a record high of $52.08 billion in fiscal year 2021-2022, the trade deficit recorded a high of $33 billion. According to the World Bank, Bangladesh Foreign remittances record high of $24.77 billion in fiscal year 2020-21 to $21.03 billion this year. Today, Bangladesh's foreign debt is over $90 billion.
It is interesting to note that Bangladesh's around $43 billion foreign debt repayment is on 20 major mega projects; owed mostly to Russia, Japan, and China. Hence, Russia, Japan, and China can bail out Bangladesh from the crisis and joining American alliance would further deepen the crisis. Bangladesh is more or less moving on the right direction as the burden should be share by the Bangla masses rather than additional loans.