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Monday, February 20, 2012

Concern on rising fuel prices!

A legitimate concern grows, both in the domestic and international arena, with the rise in fuel prices in the world market following political tension has been prevailing in the Middle-East region. Definitely, renewed tensions on Iran add to stimulate on rising fuel market.     

Oil price already touched $119 a barrel and possibly is going to reach the old records!

On this background, what is the preparation of Bangladesh? Please remember a few things before you think and comment.

1. The government already raised the domestic fuel prices on several times in this fiscal year;
2. As government claims, it still provides a substantial amount of subsidy on petroleum prices;
3. The government already borrowed a substantial amount of money from the banking system, to basically finance oil import;

Please, think about all three points for the future and the impact of those on other economic indicators.

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