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Dhaka Considers Two-Day Weekly Holiday to Encourage Energy Conservation

Posted on: Tuesday, 6 September 2005, 09:01 CDT

Dhaka considers two-day weekly holiday to encourage energy conservation

DHAKA, Sept. 5 (Xinhua) -- To offset the severe pressure on economy, the government of Bangladesh might consider two-day weekly holiday, keeping 17 percent government motor vehicles off road and converting all petroleum-based power plants into gas- fired plants within the next five years.

The energy ministry recommended a dozen steps for the government to encourage energy conservation after the government Sunday increased the prices of 10 types of petroleum oil simultaneously by an all-time high proportion ranging from 5.5 to 33 percent, The Daily Star reported Monday.

The proposal reportedly was sent to the prime minister last week and may be placed at a cabinet meeting soon.

The country now consumes 3.7 million metric tons (mt) of petroleum, which is entirely imported. Of this, 2.3 mt is diesel and 0.6 mt kerosene.

Industry people Sunday expressed concern that the fresh oil price hike in the local market will increase the production cost of the major export items and basic industrial goods by 10 to 12 percent.

They said the fresh increase in oil prices, effective from Sunday, will significantly louse the competitive edge up of Bangladeshi export products and hamper the country's overall industrial growth.

They said the oil price hike will surely cause a dominos effect in transportation, power generation, house rent and employee allowances. And all these will result in high production cost, they felt.

Bangladesh Garments Manufacturers and Exporters Association President Annisul Huaq said that the oil price surge will cut the competitive edge of the country's ready made garments in the international market.

The latest rise in diesel price will push up the agricultural output costs putting the marginal and small-hold farmers and poor urban consumers in economic hardship, said experts and officials of the ministry of agriculture.

As part of an overall rise in petroleum products, the government Sunday announced diesel price rise from 26 taka to 30 taka a litre (one US dollars equivalent to 65 taka). The government has increased diesel price five times since late 2000, when per litre price was 12.95 taka.

Economic experts and agronomists fear that diesel price hike will lead to rise in production costs of staple food rice as well as costs of agricultural commodities that will badly affect the urban poor consumers and marginal and small farmers.

The government justified the move of increasing of fuel prices on grounds of international oil price hike exceeding the 70 dollars per barrel mark. A decade ago, the price per barrel was around 15-25 dollars.

Source: Xinhua News Agency - CEIS

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