Originally posted in The Financial Express on 27 September 2026
Govt moves to curb arbitrary price hikes of essentials amid fuel shock
Agencies asked to submit market reports as fuel costs raise inflation concerns
The government has moved to strengthen market monitoring and curb arbitrary price hikes of essential food items amid renewed inflationary concerns following a sharp increase in fuel prices.
The Ministry of Commerce has sought a review of the prices of cattle feed, soybean meal, maize, wheat, wheat bran, grain-based feed and liquid milk, with particular attention to the impact of the latest fuel price increase on the market.
The move comes after the government raised the retail prices of all major petroleum products by Tk 20 per litre from September 21.
In a letter issued on September 21, the ministry asked the Bangladesh Trade and Tariff Commission (BTTC), Bangladesh Competition Commission (BCC) and Directorate of National Consumers’ Rights Protection to monitor prices and review the market situation.
The authorities concerned have been asked to submit their review reports by next week.
The letter, signed by a commerce ministry official, also asked the relevant agencies to closely monitor the prices of essential commodities following the fuel price adjustment.
Talking to the FE, Commerce Secretary Md Ataur Rahman said immediate measures had been taken to contain the prices of essential commodities following the fuel price hike.
“Irrational price hikes will be checked on the basis of data provided by the BTTC,” he said.
“We will hold a meeting with egg producers on Sunday to know their perspective following the fuel price hike,” he added.
A senior BTTC official said a team had already visited Baghabari and other milk-producing hubs to collect data on farmers’ production costs.
“Analysis based on real data is needed to know what prices farmers are receiving and what the actual prices are at the consumer level,” the official said.
The latest fuel price adjustment has heightened concerns over a fresh increase in inflation, as higher energy costs are likely to raise transportation, irrigation, production and distribution expenses.
Centre for Policy Dialogue Executive Director Dr Nazneen Ahmed welcomed the government’s move, suggesting that such initiatives should continue in a coordinated manner at least three times a year.
“Irrational price hikes beyond market factors due to supply-chain inefficiencies must be determined through coordination among the BTTC, BCC, TCB, Bangladesh Foreign Trade Institute and the Department of Agricultural Extension,” she said.
“It is obvious that the fuel price hike would put renewed upward pressure on inflation, but the commerce ministry’s step may not be focused only on taming inflation; rather, it is also aimed at checking irrational price hikes,” she added.
The commerce ministry’s letter instructed authorities to conduct special audits and strengthen monitoring of dairy companies’ raw milk collection, fat-separation calculations and sales of packaged milk.
It said corporate companies should not be allowed to abruptly increase the prices of liquid milk and other essential commodities without reasonable justification.
The relevant ministries, directorates and regulatory authorities have also been asked to strengthen strict and coordinated market surveillance, according to the letter.
The ministry has directed that meetings be arranged with all relevant stakeholders to implement the decisions.
Necessary information is to be collected and analysed before such meetings, it said.
The government’s latest intervention comes as headline inflation, although easing, remains elevated.
Bangladesh’s point-to-point inflation fell to 8.26 per cent in August from 8.32 per cent in July, while food inflation declined to 7.02 per cent from 7.16 per cent.
The recent fuel shock could complicate efforts to bring inflation down further, as higher diesel prices feed into freight, public transport, irrigation and the distribution costs of food and other essentials.
