Many factories may close down due to fuel price hike: BGMEA
July 3, 2008
Bangladesh Garments Manufacturers and Exporters Association (BGMEA) has urged the government to reduce the price of diesel, kerosene and furnace oil for survival of the RMG sector.
“If the government doesn’t listen to us, many RMG factories will be shutdown gradually,” BGMEA acting president M Shahidul Islam said at a press conference at his office yesterday.
He said around 2800 garment factories consume 400 litre diesel on an average every day to run generators for generating power as the government failed to uninterrupted supply of electricity.
“For the price hike, these factories have to pay additional Tk 50 crore whereas the whole RMG sector will have to bear a load of Tk 600 crore,” Shahidul estimated.
He informed that for shipment the RMG factories used 8,07,839 covered vans just for carrying the consignments from Dhaka to Chittagong port. These covered vans used 6,46,27,120 litre diesel.
“Increase of diesel price will cost RMG an additional Tk 100 crore on this count,” he added.
BGMEA leader said they have taken the orders from the buyers for next six months and at that time they did not quote their prices taking into account the present fuel price hike. “We don’t have any way to raise the price.”
Source: The Indipendent
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