- Bangladesh has largest increase on record in fuel prices.
- Price of petrol will rise by 51.7 percent and diesel by 42.5 percent beginning at midnight.
- Russia’s invasion of Ukraine has caused global energy prices to skyrocket.
Thousands of Bangladeshis surrounded fuel stations across the country after the government raised prices by up to 52 percent, the largest increase on record, due to rising oil prices.
Russia’s invasion of Ukraine has caused global energy prices to skyrocket, though oil has recently dropped as recession fears grow.
Dhaka announced on Friday that the price of petrol would rise by 51.7 percent and diesel by 42.5 percent beginning at midnight.
Motorcycle riders raced to fuel stations nationwide to try and fill up before the price rise went into effect. Some stations paused sales, and sporadic protests broke out.
Demonstrators said the increases will disproportionately hit the country’s tens of millions of poor people, who use diesel to power transport and farming irrigation pumps.
In Sylhet, retailers tried to impose the higher prices immediately after the hike was announced, Police Commissioner Md. Nisharul Arif told AFP.
“People gathered and protested in front of all the fuel pumps in Sylhet city.”
There were similar protests in other cities.
Energy minister Nasru Hamid told reporters the decision was driven by global markets.
“Some adjustments have to be made in view of the global situation. If the situation normalises, the fuel prices will be revised accordingly,” he said.
Bangladesh has been hit by higher energy prices in the wake of the war in Ukraine, spurring a struggle to source fuel for power stations.
Diesel power plants accounting for 1,500 megawatts of generation capacity — 10 percent of the total — have been taken offline, as have some gas-fired plants.
In recent weeks, electricity blackouts of up to 13 hours a day have resulted.
Following a visit by representatives of the Washington-based lender, Dhaka has requested $4.5 billion from the International Monetary Fund, according to the Daily Star newspaper.
In the last three months, the Bangladeshi taka has fallen by around 20% against the dollar, further weakening the country’s finances, with the current account deficit reaching $17 billion.
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