Bangladesh is once again witnessing a sharp increase in the cost of living as repeated hikes in fuel price and electricity tariff cause persistent inflation. Additionally, concerns over the prolonged liquidity crisis in the banking sector place additional pressure on depositors and business people as well as on ordinary citizens. For millions of low- and middle-income families, managing daily expenses has become an increasingly difficult challenge.
Within less than two months, the government increased fuel prices twice. Diesel, kerosene, petrol, and octane all saw significant price hikes. Meanwhile, Liquefied Petroleum Gas (LPG) prices were raised on several occasions though recently 12 kg LPG cylinder price was reduced by Tk 55 to Tk1885.
Although authorities justified these increases by citing global energy market trends and adjustments under the fuel pricing mechanism, the consequences have quickly spread throughout the economy.
Fuel is a fundamental input for transportation, agriculture, industry, and trade. As transport costs rise, businesses inevitably pass the additional expenses on to consumers. The result is evident in markets across the country. Rice, lentils, edible oil, vegetables, fish, poultry, and eggs have all become more expensive. Many vegetables are now selling at Tk 80 to Tk 120 per kilogram, while egg prices have increased substantially over the past month. For households already struggling with stagnant incomes, these rising prices are eroding purchasing power and reducing living standards.
The voices of ordinary citizens reflect the severity of the crisis. Rickshaw pullers, domestic workers, and private-sector employees all report that their earnings can no longer cover basic necessities. Savings have become nearly impossible, while household budgets continue to shrink under the weight of inflation. The growing gap between income and expenditure threatens to push more families into economic vulnerability.
At the same time, economists have expressed concern over Bangladesh Bank's liquidity support to commercial banks. While ensuring financial stability is important, expanding money supply without corresponding increases in production and supply can worsen inflationary pressures. As noted by economists, the combination of higher fuel costs and excess liquidity creates a dangerous environment where inflation becomes more persistent and difficult to control.
Adding to public anxiety is the increase of power tariff. Bangladesh Energy Regulatory commission (BERC) on Wednesday raised the retail electricity price by 16.68% and wholesale rate by 19.85%. this higher electricity prices will further increase production costs and household expenses, triggering yet another round of price increases across sectors. While authorities argue that rising generation costs necessitate tariff adjustments, questions remain about inefficiencies, mismanagement, and controversial contracts within the power sector.
However, country's policymakers must recognize that inflation is not merely an economic indicator, it is a daily hardship for millions. Fiscal discipline, prudent monetary management, greater market oversight, and reforms in the energy sector are urgently needed. Without effective intervention, the burden of rising costs will continue to fall disproportionately on those least able to bear it.
