The Centre for Policy Dialogue (CPD) has warned that recent increases in electricity and fuel prices will place additional strain on ordinary citizens. CPD Executive Director Fahmida Khatun noted that the price hikes, particularly in fuel and electricity, are exacerbating inflation and making it harder for families to manage their expenses.
Khatun made these remarks during a press conference held at the CPD office in Dhanmondi, Dhaka, on the topic of 'Bangladesh Economy in FY 2025-26: Multidimensional Challenges in the Post-Pandemic Era.' CPD Honorary Fellow Mustafa Rahman was also present. The conference aimed to review the overall economic situation of Bangladesh in the current fiscal year ahead of the national budget for FY 2026-27.
Fahmida Khatun highlighted that Bangladesh's economy is facing multiple challenges, including high inflation driven by increased costs in fuel, transportation, and services. She noted that wage growth has not kept pace with inflation, significantly reducing the purchasing power of people with limited and fixed incomes.
CPD's review showed that fuel prices have risen notably from December last year to May this year. Diesel prices increased by 15%, while petrol, octane, and kerosene prices rose by nearly 20%. These price increases have also impacted the transportation sector, leading to higher bus fares and transportation costs across the country.
In addition to fuel, the price of cooking gas has also increased sharply. The price of a 12 kg LPG cylinder rose by over 40% from Tk 1,341 in March to Tk 1,885 in June. CPD identified weaknesses in market management and supply chain for essential goods as another major cause of inflation. Fahmida Khatun pointed out that multiple layers of middlemen often lead to higher retail prices, making consumers more vulnerable during economic uncertainty.
Helen Mashiat, CPD's Senior Research Associate, commented on the electricity price increase, stating that there was no need for a second-phase increase in fuel prices as global fuel prices had already started to decline. She suggested that price increases could have been targeted at higher electricity consumers rather than affecting all users equally.
