Fuel-Power price hike to intensify pressure on consumers: CPD

Rising fuel and electricity prices are deepening inflationary pressure in Bangladesh, making household expenses increasingly difficult for ordinary citizens, according to the Centre for Policy Dialogue (CPD).

Speaking at a press briefing titled “Bangladesh Economy in FY2025–26: Multiple Challenges in a Transition Period” held Thursday (June 4) at CPD’s Dhaka office in Dhanmondi, Executive Director Fahmida Khatun said the economy is facing complex structural and external challenges.

CPD Emeritus Fellow Dr. Mustafizur Rahman also attended the briefing, which reviewed the country’s macroeconomic situation ahead of the upcoming national budget for FY2026–27.

Fahmida Khatun said inflation remains one of the most pressing concerns, driven largely by higher costs in fuel, transport, and services.

She noted that inflation rose to 9.04 per cent in April, while wage growth has lagged behind, eroding purchasing power, particularly for fixed- and low-income groups.

According to CPD analysis, fuel prices have increased significantly between December last year and May this year. Diesel prices rose by nearly 15 per cent, while petrol, octane, and kerosene saw an increase of around 20 per cent. The surge has pushed up transport fares and logistics costs across the country.

Liquefied petroleum gas (LPG) prices have also climbed sharply. A 12-kg cylinder, which cost Tk 1,341 in March, increased by more than 40 per cent to Tk 1,885 in June, further adding to household pressure.

CPD also identified weaknesses in market management and supply chain inefficiencies as key drivers of inflation.

Fahmida Khatun said multiple layers of intermediaries often inflate retail prices, leaving consumers vulnerable during periods of economic stress.

CPD Senior Research Associate Helen Mashiyat added that recent electricity tariff hikes were unnecessary, noting that global energy prices had already begun to decline.

She suggested that tariff adjustments could have been made more selectively, targeting higher consumption users instead of raising rates broadly.