BGMEA voiced deep concern over the price hike of diesel and furnace oil

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) voiced deep concern on Saturday over the recent price hike of diesel and furnace oil.

“In readymade garment industry, production and transportation costs will increase and the level of competitiveness will fall due to the price hike of fuel,” BGMEA President Md. Shafiul Islam Mohiuddin said in a statement.

Stating that entrepreneurs had negotiated many export orders before the fuel price rise, Shafiul said, “If they’ll have to buy fuel at higher prices, it’ll be difficult for them to continue production.”

He added that garments factory owners are meeting their electricity demands by using generators run by diesel and furnace oil.

The RMG sector is already in crisis and the increased prices of raw materials, including cotton in the international market, infrastructure problem, inadequate supply of gas and electricity, increased taxation at source, higher interest rates and other factors have made business difficult, he said.

Urging the government to revert to the previous prices of diesel and furnace oil, the BGMEA chief said: “Under the circumstances, it’ll be impossible for many businessmen to compete in the international market and sustain export growth following fresh fuel price increase.”

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