Fuel oil price hike to put RMG sector in dire straits

BGMEA yesterday predicted an adverse affect of price hike of fuel oil on national economy and said the production cost of readymade garment will be increased by 15 per cent leaving the export trade in dire straits.

"The readymade garment sector has to pay additional Tk 600 crore annually due to the oil price hike," acting president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Shahidul Islam told a press conference yesterday at his office.

Urging the government to reconsider the decision of fuel oil price hike the BGMEA boss said, " We are in doubt how far we will be able to go in the global market with the increased cost of production while the competitors are decreasing their costs." Islam said price hike of fuel oil will increase transport cost resulting further price hike of essential commodities. This will push the poor garment workers towards more vulnerable situation, he said.



The BGMEA chief said out of 38 lakh MT of annual fuel oil imports, 70 per cent are diesel, 19 per cent petrol, 7 per cent octane and the rest are other fuels. "We are concerned over price of diesel, kerosene and furnace oil," he said.

Islam demanded to keep the previous price of diesel, kerosene and furnace oil and urged the Government to ensure uninterrupted power supply to the industrial units.

The BGMEA chief also demanded reinstatement of one day weekly holiday instead of present two days as the Government failed to supply uninterrupted power six days a week as per commitment.

Vice president Mahmud Hasan Khan and Harun-ur-Rashid, director Abdus Salam Murshedy and former president Tipu Munshi among others, were present, on the occasion.