Low-income households already under pressure from rising commodity prices are facing a fresh blow, as a fuel supply crunch and price hike ripple through the economy.
Government claims that higher fuel prices will not drive inflation appear to be at odds with the situation on the ground, where transport costs have surged and are being passed on to consumers.
Freight charges for trucks have risen sharply, increasing the cost of moving goods across the country. Ultimately, the burden is falling on buyers.
Suman Talukdar, who transports agricultural produce from Jessore to Dhaka, said he is struggling to secure vehicles. “We often have to wait up to two days for a truck. What used to cost Tk50,000 now ranges between Tk55,000 and Tk57,000. It is becoming difficult to sustain the business under these conditions,” he told TIMES of Bangladesh.
The government recently increased diesel prices by Tk15 per litre — just Tk1 higher than the rate set on 6 August 2022. Although prices were reduced by Tk14 per litre at different times since then, transport fares were never adjusted downward. Now, despite returning close to earlier price levels, freight charges have jumped again.
Authorities have raised bus fares by just over 5% and indicated that truck fares may follow a similar trend. However, freight charges are not formally regulated and instead fluctuate based on supply and demand.
Mohammad Russell, a farmer from Jessore, said the cost of sending vegetables to Dhaka has risen steeply. “Previously, I could send produce for Tk10,000 in a small truck; now it costs Tk13,000. I usually send around 400 maunds of vegetables, and this increase is hurting our business,” he said. He added that transport costs have increased not only between districts but also within them.
Truck driver Mohammad Zia from Jamalpur said fare hikes were inevitable. “Bus fares have gone up, so we have raised ours too,” he said.
Market reality contradicts minister
The impact of rising transport costs is clearly visible in capital markets, where prices of vegetables, fish and meat have climbed significantly.
Commerce Minister Khandaker Abdul Muktadir, speaking in Sylhet over the weekend, maintained that the government would manage the situation effectively despite higher fuel import costs.
“Diesel prices have increased by only 15%, which is lower than in neighbouring countries. This ‘modest rise’ may affect commodity prices by around 30 poisha per kilogramme and will not have any major negative impact on overall inflation,” he said.
However, agricultural economist Jahangir Alam Khan disagreed. He told TIMES that higher fuel costs would raise expenses across the entire supply chain. “This will ultimately fuel food inflation,” he warned.
At Karwan Bazar, vendors reported noticeable price increases. One seller, Rashed, said, “All vegetable prices have gone up.”
Papaya is now selling for Tk60. Bitter gourd has risen to Tk70–80 within a week. Okra is selling for Tk60, while pointed gourd has climbed to Tk80. Aubergines now cost Tk80 per kilogramme and tomatoes have increased slightly to Tk55.
Another trader said higher prices had dampened demand.
In the wholesale market, potatoes are now selling at Tk18 per kilogramme. Trader Gafur said transport costs had increased significantly. “Freight charges for potatoes used to be Tk1 per kilogramme; now they are Tk1.5, sometimes even Tk2,” he explained.
Onion trader Khandu Mia said prices had also risen, with a five-kilogramme batch now selling for Tk180, up from Tk150–160. Wholesale prices of garlic and ginger have increased by Tk10.
For low-income earners like rickshaw driver Tota Mia in Kalabagan, the rising cost of food has made daily life more difficult. “Our fares have not increased. Even if we ask for more, people won’t pay,” he said.
He had come to the market hoping to buy cauliflower for his young son, only to find prices had risen again. The fact that the winter vegetable is now available in summer offered little comfort.
Egg prices have also increased. A dozen eggs is now being sold at 44 taka, up from 40 taka last week. This means the price of each egg has risen by around 1 taka.
Abdul Alim, a trader at Segunbagicha kitchen market, said he sold broiler chicken at 180 taka per kilogram, compared with 160 taka the previous week.
Fish prices have also gone up. Abdullah, a vendor at Mohakhali kitchen market, said he was selling Rui fish at between 350 and 450 taka per kilogram, an increase of around 30 taka compared with last week.
The price of Pangas and Tilapia has risen by 10 taka per kilogram, while Shing fish has increased by 50 taka.
Small traders adapt to survive
Layla Begum, who sells samosas on a pavement in Farmgate, said she has been forced to shrink portion sizes to cope with higher potato prices.
“Potatoes are getting more expensive, so we have to make smaller samosas. If we raise prices, customers won’t buy — their incomes haven’t increased,” she said.
Street food vendors are also grappling with rising gas costs. Most rely on liquefied petroleum gas (LPG) cylinders for cooking.
A 12kg LPG cylinder that cost Tk1,306 in January now has an official price of Tk1,940, though traders say it often sells for between Tk2,100 and Tk2,200.
