Dhaka Chamber of Commerce and Industry (DCCI) called upon the government to continue onshore and offshore natural gas exploration to ensure long term energy security.
The Chamber thinks that for ensuring a long term energy security, the country needs to work out a long term strategy as well as to continue onshore and offshore gas explorations.
It added that austerity in consumption should be strictly followed.
DCCI recommended reducing the fuel price as soon as the international market price comes down considering the negative impacts of price hike on the economy.
Recently, the government increased the price of all fuels despite the gradual fall in the global energy prices in recent times.
The government increased the prices of all the refined fuel oil products by 42.5 to 52 percent on August 5, 2022.
After a long time of stagnant situation in the economy due to Covid-19 pandemic, the country has just started entering into an economic revival phase.
Diesel is the most consumed fuel in the country, accounting for around 73 percent of the country's total fuel consumption. For instance, 90 percent of the transportation sector is dependent on diesel.
Additionally, vehicles which are powered by octane and petrol will also have to bear the increased cost.
This will also cause spike in the domestic freight cost, eventually leading to high price of essentials across the country.
DCCI feels that another major impact will be on the cost of agricultural production as diesel is widely used in irrigation of land.
Recurring fuel and fertiliser price hikes will directly impact the production cost in agriculture and gradually hamper food security and bring further miseries to public life.
Manufacturing industries are already being suffered due to electricity rationing as diesel and LNG price went high globally.
However, this price hike of fuel in addition to the recent price hike of natural gas will have a domino effect on the entire economy, DCCI thinks.
The cumulative impact of price hike of fuel will cause inflationary pressure on the economy by pushing up the operating cost of all energy-dependent businesses and industries.