Fuel price cut in limbo as ministers contradict one another

Two Ministers, a senior and another junior, are issuing contradictory statements on the vital issue of price cut of fuel repeatedly that has irked the common man as it created uncertainty over the actual price of fuel in the coming days.
Just one week back the Finance Minister AMA Muhith said fuel price would be adjusted soon. He also said a downward adjustment in the petroleum price will be made within January.
Refuting the Finance Minister's assurance, State Minister for Power and Energy Nasrul Hamid on Wednesday declared that the government has decided that it will not go for fuel price cut.
Explaining the cause of such a decision he said, "There will be no fuel price adjustment right now as the price is going up in the global market. The World Bank has also made a forecast about its uptrend in the coming days."
Nasrul made this comment at his secretariat office while replying to a query of journalists on the government's future plan on the fuel price cut.
The State Minister's remark came in contrast to Finance Minister Muhith's earlier assurance of a downward adjustment of the petroleum prices within January.
In November last year, the government announ-ced that the fuel prices would be cut in three phases and in the first phase the government had slashed the prices of octane, petrol, and diesel between Tk 6 and Tk 10 per litre.
"In the first phase, the prices of octane, petrol and diesel may go down between Tk 6 and Tk 10 a litre and a circular to this effect will be issued within a week," Nasrul had told journalists at his secretariat office in November.
According to the global market, crude petroleum was selling at US$52.76 per barrel on Wednesday from earlier below $50 last week.     
Defending the government's decision, Nasrul said the fuel price will not be adjusted as the desired benefit of the measure will not go to the common people. "Earlier, we had adjusted the fuel prices. But, transport fare was not reduced and people didn't get the benefit."
"In last two and half years we watched that theprice of fuel dipped but the government did not cut its price saying many things�.however, we already failed to take its benefit by keeping the price at a lower rate, it is unfortunate," Prof Anu Muhammed told the Daily Observer.
According to the BPC it costs the government about Tk 30 to produce a litre of furnace oil and about Tk 55, Tk 50, and Tk 38 for octane, petrol, and diesel respectively after buying oil from the international market, including the 55 per cent of SD (supplementary duties) and VAT.
Clarifying the latest stance, Nasrul said his Ministry had written to the government's policymakers to reduce the fuel prices. But, the government has taken the decision not to reduce the prices due to the latest global market trend.
He also said still the BPC's outstanding payment with the government is about Tk 17,000 crore which was given to the state-own enterprise in the past as a support.
"The government is making profit from diesel and octane sales, though it is negligible in diesel, but it looks huge due to its enormous quantity," Nasrul said.
"The government should not be a profit making enterprise, as the money makers are now ruling the country they failed to match with the peoples' aspirations, the government should be pro-people and committed to their commitments to the people," Prof Anu said.