For Arman Ahmed, shopping at Azimpur market has become a tougher calculation than before. Prices of daily essentials were already high, and another round of increases is putting further pressure on his household budget.
“Prices were already high. If they rise further, it will become difficult to manage household food expenses,” Arman told TIMES.
The fresh pressure on consumers has come after the latest fuel price hike, with traders citing higher truck fares as a reason for raising prices of fish, vegetables and other essentials.
But the increase in transport charges is often much higher than the actual rise in fuel costs, adding an extra burden on consumers already struggling with high inflation.
Last Sunday, the government raised prices of all fuel products by Tk20 per litre. Diesel, widely used in transport, increased from Tk115 to Tk135.
Following a 17 per cent rise in fuel prices, the government increased bus fares on long-distance and city routes by 6–7 per cent. However, truck fares do not follow any fixed kilometre-based formula and are largely determined through bargaining.
With transport owners and drivers often acting collectively, questions remain over whether there is genuine competition in setting truck fares.
The impact is already visible in Dhaka markets. Loose soybean oil prices have increased by Tk8–10 per litre, most vegetables by Tk10 per kilogram, and various types of fish by Tk20–50 per kilogram.
A New Market vegetable seller said traders had little option but to pass on higher wholesale prices.
“We sell at the price we buy from the wholesale market after adding some profit. If prices rise at wholesale markets, we also have to increase prices. When prices are high, customers also buy less,” he said.
Fish seller Mofizul Islam said wholesalers had increased prices after the fuel hike.
“Wholesalers have increased fish prices because of the fuel price hike. That is why prices have also gone up here,” he said.
However, the actual impact of higher transport costs on product prices appears much smaller than the increases seen in retail markets.
If the truck fare for carrying vegetables from Jashore rises by Tk5,000 and a truck carries 10 tonnes of goods, the additional cost comes to only 50 paisa per kilogram.
Even if wholesale prices rise by 50 paisa, Tk1 or Tk2 per kilogram, retail markets have increasingly adjusted prices by Tk5 or Tk10, creating additional pressure on consumers.
Fuel cost up Tk3,000, fare rises Tk5,000
Truck fares from Benapole, the country’s largest land port in Jashore, to Dhaka have increased from Tk20,000–21,000 to Tk25,000–26,000.
On the Chattogram route, fares have risen from Tk27,000–28,000 to Tk35,000–36,000. Routes to Gazipur, Tongi and Narayanganj have seen fares increase from Tk22,000 to Tk26,000–27,000.
Truck driver Rakib Hossain said a truck travelling between Benapole and Dhaka consumes around 150 litres of fuel.
“With a Tk20 increase per litre, our cost has increased by Tk3,000,” he said.
However, the fare has increased by around Tk5,000, meaning operators are collecting an additional Tk2,000 per trip after the fuel price adjustment, according to Rakib.
Azim Uddin Gazi, general secretary of the Benapole Transport Agency Owners Association, said around 500 goods-carrying trucks carrying imported products leave Benapole for different destinations across the country every day.
Motiar Rahman, president of the Benapole Land Port Importers and Exporters Association and owner of C&F firm Sarathi Enterprise, warned that higher transport costs would eventually reach consumers.
“If businesses adjust the increased transport costs with product prices, the pressure will ultimately fall on consumers,” he said.
Jashore Chamber of Commerce President and importer Mizanur Rahman Khan also said rising transport costs would gradually push up prices of different products.
“If transport costs rise, prices of various products may increase gradually. Ultimately, the impact will fall on consumers,” he said.
Dhaka-Chattogram route sees sharp jump
Transport costs from Chattogram Port, Khatunganj and other wholesale markets to Dhaka and other regions have also increased sharply.
According to transport owners, truck and covered van fares on the Dhaka-Chattogram route are expected to rise by up to 25 per cent.
They said fares on the route were previously around Tk30,000–32,000 and could now reach Tk35,000–40,000.
Chowdhury Zafar Ahmed, secretary general of Bangladesh Covered Van Truck Prime Mover Goods Transport Owners Association, said the round-trip operating cost of a covered van on the Dhaka-Chattogram route had risen from Tk25,000–26,000 to Tk31,000–32,000 after the fuel price hike.
“Adding the driver’s salary, tyre costs and other maintenance expenses, it is not possible to operate vehicles at the previous fare. To survive, we will have to charge Tk35,000–40,000,” he said.
Fares for lighter vessels are also being prepared for an increase of 25–30 per cent.
Sajedur Rahman Bokul from Jashore also contributed to the report.
