[chottala.com] The way fuel price should be rationalized - some related thoughts and proposal

The way fuel price should be rationalized - some related thoughts and proposal

Do not adjust the full gap at the mass-transportation and agricultural level. Leave a significant gap intact for the vulnerable groups. However, make the gap fixed in the sense that the price itself becomes variable to reflect the international market. After that the price should go up or down with the market price (proportionally or throuhg a non-linear formula, the formula could be linear below the benchmark, but damped above the benchmark). Bottomline is - since we have adopted the floating currency regime, the local market should also learn to deal with variable fuel price. Otherwise, all our efforts and hard work will go in vain!

 

We think we have said it all in the sub-headline. Assume a fixed loss that is rational. Say it to the citizens. And also establish mechanisms that ensures that the yearly loss stays somewhat same as far as national exchecker is concerned. A number of provisions can be made. One segment of the users could compensate for the other segments which are vulnerable. Its not clear what is the energy policy within the Special Economic Zones such as EPZs. Government does everything possible to make sure that EPZ is outside the influences of the possible internal problems. Ok, we accept that. But doesn't that imply that they shouldn't enjoy the same protection as the internal industry as far as outside influences are concerned? So, they should be allowed to be exposed to the outside turmoils such as fuel price fluctuations. Are they now? If not, they should be.

 

The only other thing that can be done is provide an example to clarify the proposal. Should we do that? But no data could be found handy. We would request anyone from readers who has the data to provide us with an example. Thanks in advance!

 

At the end, a rationalization initiative should try to achieve to goals:

 

1. The govt.  exchecker should probably continue to take an amount of loss in the short to medium term. However, pricing policies should be made in a way that makes the govt. deficit a known varible - as opposed to the current pricing regime which means its unknown for the government but know for the industries. The current policies makes the industries incompetent in the sense that our industry don't learn to adapt.

 

2. One implication of this high-level goal would be to make the local market learn to adapt to chaning fuel price. The market should benefit or lose from decreasing or increasing fuel price. It would also force the market players to go for alternative renewable sources such as Photo-voltaics, among others.

 

If you thought some of the ideas are worth of your reading time, please forward it to others. If you have an ear to the columnists in regular traditional media, please forward it to them. If you have an ear to the journalists and news editors of the electronic media, discuss it with them. Hope they would look at the suggestions and give due diligence. 
 
Thanks for your time,
Innovation Line
 
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Note: This is a freelance column, published mainly in different internet based forums. This column is open for contribution by the members of new generation, sometimes referred to as Gen 71. If you identify yourself as someone from that age-group and want to contribute to this column, please feel free to contact. Thanks to the group moderator for publishing the article as Creative Commons contents.
 
Dear readers, also, if you thought the article was important enough so it should come under attention of the head of the government please forward the message to them. Email address for the Chief Advisor: feeedback@pmo.gov.bd_ or at http://www.cao.gov.bd/feedback/comments.php .
 
The more of you forward it to them, the less will be the need to go back to street agitation. Use ICT to practice democracy.

Also send to your favourtie TV channel:
Channel i: http://www.channel-i-tv.com/contact.html
ATN Bangla: mtplive@atnbangla.tv_
NTV: info@ntvbd.com_
RTV: info@rtvbd.tv_
BTV: info@btv.gov.bd_
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