The World Bank says fuel prices will increase by 20 percent
This year, the World Bank will increase the fuel prices by 20 percent in the international market. The company says the price of fuel oil can rise up to 65 US dollars per barrel at the end of the year. Gas prices will increase with oil. However, coal prices may fall
The World Bank's forecast was released on Tuesday. The company publishes this kind of forecast every six months after the product market. This year's special attention has been given to fuel prices, which has been growing for several months.
The World Bank said three-quarters of the estimated 40 products in the forecasts for the first three months of this year have risen. But the price of four percent of the goods in five percent compared to 2011 is low. That year, the world price was the highest in the world.
The World Bank believes that the upward trend in the price of goods is the cause of the global economy. Global production or GDP growth in 2013 is 3.2 percent, which was 2.4 percent in the previous year. Alongside the global economy, the production of some products has been stagnant. In addition, China has decided to reduce environmental pollution and reduce the production of fuel. The cultivation of grains in the United States has decreased. Geopolitical unrest in the Middle East is underway. This is also due to the emergence of the commodity market.
The World Bank estimates that the average price of fuel oil this year could stand at 65 dollars per barrel. It says that the average rate of oil barrel per barrel in 2010 was $ 53. The fuel oil price was very low at the beginning of 2016.
As a fuel price hike, the World Bank has blamed the production of the Organization of Petroleum Exporting Countries (OPEC) members of the oil exporting nations. The organization says the OPEC countries aim to increase prices by reducing the oil production. Besides, the fear of imposing new sanctions on Iran, the unrest between Iran and Saudi Arabia has played an important role in increasing the price of fuel oil in March. Oil prices rose in April to $ 74 per barrel in April. In this way, the oil company has increased production in the United States by raising prices.
According to the World Bank report, this year, the average price (LNG) of Liquefied Natural Gas (in Japan) can be increased to $ 8.8 million per million British Thermal Unit (MMBU), which was 8 dollars 4 cents in 2017. But coal prices will decrease. At the end of this year, the average cost of every ton of coal will be reduced to 85 dollars, which was more than 88 dollars earlier.
Bangladesh imports a huge amount of fuel oil and coal from the world market. Gao has started importing, which will increase further in the future. If the price of fuel oil increases, global shipping will increase. It increases the cost of importing other products. In this, the prices of essential commodities, especially on edible oils, sugar, wheat, rice etc., have a direct impact on the low-income people of the country.
The World Bank, however, says that this year, the prices of various essential commodities in the international market will not increase, rather they may decrease. Especially the sugar prices can fall to $ 300 per tonne in the current year, which was 350 dollars in the year 2017. Sugar prices in March reduced by $ 10 to $ 290 per tonne in the previous month.
Likewise, the price of soybean oil, which was $ 864 per tonne in January, was sold in March at $ 834 per tonne. The World Bank estimates that the average price of soybean oil can stand at $ 857 per tonne at the end of this year. However, the price of palm oil has increased by $ 18 to $ 681.
The World Bank says, there will be no special variation in the price of wheat in the world market this year and next year. In the United States, Hard Red Winter (HRW) wheat price was $ 181 per tonne in March. At the end of the year, it could be $ 190.
The World Bank predicted that the price of various metals could increase by 9 percent this year. Gold prices could rise to $ 1,300 per ounce by $ 42 a barrel, which will fall slightly in the coming year.