The price of Brent crude - the global benchmark for prices -
dropped below $100 a barrel for the first time since the start of March.
The RAC has said it is "vital" that fuel retailers
start passing on falling wholesale prices to consumers.
Petrol prices hit another record high on Monday, meaning it
costs more than £90 to fill a family car, the RAC said.
The average price of a litre of petrol rose to 163.71p on
Monday, and diesel also hit a fresh record of 173.68p.
Oil prices soared after Russia invaded Ukraine, with the
price of Brent crude oil hitting a near 14-year high at one point.
But in the past few days, the price of oil has dropped due
to a number of factors, including hopes of progress in ceasefire talks between
Russia and Ukraine, and also expectations that demand from China will ease as
Covid cases there surge.
Brent crude fell to about $98 a barrel on Tuesday before
recovering some ground.
RAC fuel spokesman Simon Williams said that although petrol
prices were at record highs, drivers "should be encouraged" by the
fall in oil and wholesale prices.
"It's now vital that the biggest retailers who buy fuel
most often start to reflect these reductions at the pumps to give drivers a
much-needed break from the pain of constantly rising prices," he added.
The AA said that the wholesale price of petrol has plummeted
by 12.8p a litre since Wednesday.
Luke Bosdet from the AA said: "We should be seeing
these record prices level off and start to fall away later this week. If not,
MPs who are being deluged by complaints from angry constituents, need to be
asking questions in Parliament.
"The government is under intense pressure from the cost
of living crisis. They don't need the fuel trade to 'feather' a potential drop
in pump prices."
Andrew Opie from the British Retail Consortium said
supermarket retailers "understand the cost pressures" facing
motorists, and will do "everything they can to offer the best
value-for-money across petrol forecourts, particularly if the price of oil
falls".
The Petrol Retailers Association, which represents independent
forecourts, said it would expect prices to fall when fresh stock is delivered.
Gordon Balmer, the PRA's Executive Director, said forecourts
bought from suppliers based on a price with one or two days' lag, or in some
cases a week's lag. This means it can take a few days for wholesale prices to
filter through to the pumps.
Global shifts in price
Oil prices are mainly determined by the price of crude oil
and the dollar exchange rate, as agreements are made in dollars.
Russia is the third largest oil exporter and some Western
countries, for example the US and Canada, decided to halt imports from the
country in response to Russia's actions. It means demand for oil from other
producers has increased, leading to increased prices.
The UK only imports about 6% of oil from Russia, so is not
as dependent on Russia for the commodity supply as other European countries are
and has said it plans to phase it out.
It is, however, affected by the global shifts in price.
On Monday, some analysts told MPs on the Treasury Committee that they expected the recent
fall in the oil price to be temporary.
Nathan Piper, head of oil and gas research at financial
services company Investec, said further restrictions on Russian oil exports
would mean consumers "need to get ready for what could be continued increases
in fuel prices."
Dr Amrita Sen, director of research at Energy Aspects, told
the committee that petrol prices could rise to around £2.40 a litre. And that
diesel prices of "£2.50 - even closer to £3" were "definitely in
the realms of possibility".
Energy Minister Greg Hands has said the UK's transition to
cleaner forms of energy production is now "an issue of national
security" and not just of decarbonisation.
Comment
The pace of Japanese inflation accelerated in May partly due to higher energy bills, government data showed Friday, as analysts speculate on the timing of the Bank of Japan's next rate hike.
The Consumer Price Index (CPI) -- which excludes volatile fresh food prices -- rose 2.5 percent year-on-year, compared with the 2.2 percent logged in April by the internal affairs ministry.
The ministry said that "energy, including electricity and gas bills, contributed" to the acceleration, which was slightly lower than market expectations of 2.6 percent.
While the United States and other major economies have battled sky-high inflation in recent years, price rises in Japan have been less extreme.
The Bank of Japan is targeting sustainable, demand-driven inflation of two percent. While the CPI has been above this target since April 2022, the central bank has warned it was due to unstable factors such as the war in Ukraine.
Recently, however, the BoJ has taken cautious steps away from its long-standing ultra-loose monetary policies.
The BoJ said last week it would trim its vast hoard of government bonds, having raised interest rates for the first time since 2007 in March.
"With inflation remaining somewhat sticky... a further rate hike in July or September is likely", although "the timetable for that may remain unclear", Katsutoshi Inadome, senior strategist at SuMi TRUST, said earlier this month.
Excluding fresh food and energy, Japanese prices rose 2.1 percent in May, against market expectations of 2.2 percent and following a 2.4 percent rise in April, Friday's data showed.
Data released earlier this month showed that Japan's household spending rose in April for the first time in 14 months, with wage growth at the fastest pace in three decades.
Wage growth is a key factor for the BoJ's policy decisions, as it seeks a "virtuous cycle between wages and prices".
(Source: BSS)
Comment
As the Ekushey Boi Mela (Book Fair) 2024 crossed its seventh day yesterday, publishers and book sellers are hopeful for increased sales and public engagement, despite not yet reaching their anticipated sales targets.
The Dhaka Metro Rail has infused the fair with a new vibrancy, making it more accessible for visitors from distant areas like Uttara, Mirpur, and Motijheel. Ovi Islam, from Farmgate, shared his positive experience of using the metro rail to bypass traffic jams, despite the initial long wait for tickets.
Although some visitors, like Ovi who visited the fair three times without purchasing books, contribute to the growing foot traffic, the overall sales have yet to see a significant boost.
Another group of visitors from Uttara noted the ease of accessing the fair this year, thanks to the metro rail, which has offered a way to avoid the infamous Dhaka traffic congestion.
Book sellers expressed mixed feelings about the fair's progress. While visitor numbers are on the rise, actual book purchases remain lower than expected. Nur Hossen Sarkar from Anupam Prokashoni observed that many attendees are more interested in browsing than buying. Similarly, Mohammad Jabed from Mowla Brothers noted a slight decrease in sales compared to the initial days but remains hopeful for an uptick in activity.
Some exhibitors have faced challenges with their stall placements, leading to visibility and accessibility issues. Sumon Saj from Nongor Publication voiced concerns about being allocated a less favorable location and has reported the issue to Bangla Academy without seeing significant action.
Some publishers also expressed dissatisfaction about the overall arrangement and environment. These issues suggest that while the metro rail has made the fair more accessible, improvements are still needed in its organization and visitor experience.
With the fair still underway, publishers and sellers are optimistic about a surge in sales and visitor numbers, especially with the upcoming weekend.
-UNB
Comment
Private sector’s Shahjalal Islami Bank is in trouble with realisation of the loan from Dhaly Construction and grant of new loan of Tk 408 crore to the company. The loan was disbursed without adequate collateral and verifying the financial status of the customer.
According to the report of Bangladesh Bank, the then
managing director and board of directors, along with the officers of the
relevant departments of the bank's branch and head office, cannot avoid the
responsibility of this irregularity, said a report of the Bangladesh Bank.
It is known that Dhaly Construction took a loan of Tk 129
crore in 2013 from Trust Bank's Dilkusha branch in the capital. At the end of
2015, the loan amount increased to Tk 156 crores.
In November 2015, Dhaly Construction applied to Shahjalal
Islami Bank to acquire the Trust Bank loan. Dhanmondi branch of Shahjalal
Islami Bank acquired Dhaly Construction Limited's loan of Tk 118 crore from
Trust Bank in December of that year.
In December, Shahjalal Islami Bank disbursed an additional
Tk 188 crore funded and Tk 70 crore unfunded loan to Dhaly Construction Limited.
In August 2017, Shahjalal Islami Bank gave another loan of Tk 115 crore. Of
this, 85 crores are funded and 30 crores are non-funded. But Shahjalal Islami
Bank could not tell Bangladesh Bank how much money has been loaned and against
which assets.
According to the report, Shahjalal Islami Bank gave the loan
forcefully to Dhaly Construction due to the failure of various companies to pay
their debts. As a result, at the end of April this year, the amount of loan
disbursed by Shahjalal Islami Bank to Dhaly Construction stood at Tk 408 crore.
Out of this, 350 crore are funded and 58 crore non-funded.
Shahjalal Islami Bank was unable to collect the money
despite repeated efforts. Dhaly Construction has mortgaged 721 acres of land
and a building measuring 37,000 square feet as security against the loan.
In this regard, a deputy managing director of Shahjalal
Islami Bank, on condition of anonymity, told the media that “Dhaly Construction
is in a good position among the country's construction companies. We have
business relationship with them since 2015. The company is facing big
challenges due to the epidemic. Although we are hopeful of recovering the loan,
it will take more time to get the money back.”
Regarding cashing the bill of Dhaly Construction through
another bank instead of Shahjalal Bank, the Deputy Managing Director said that
Dhaly Construction did this due to the need for cash. They thought that if they
deposit the bill in the bank, the money will be deducted to pay off the loan.
However, when asked about the violation of the bank's board
of directors policy in disbursing loans, he refused to make any comment.
Dhaly Construction chairman Rafique Uddin told the media
that “Our company has implemented large road and construction projects
including several university buildings in the country. We have been facing
challenge since Covid pandemic as some our projects had to be stopped.
Moreover, the abnormally high prices of construction materials also increased
the project cost."
When asked about repayment of loan from Shahjalal Islami
Bank, he said that new projects will be taken up and the loan will be repaid.
The business relationship with the bank will also continue.
Dhaly Construction Advisor MM Mizanur Rahman told the media
that there were some errors in the documents. It will be resolved quickly. He
said, the bank can collect the debt by selling the company's assets. Apart from
this, the company is involved in several construction projects. If the work of
these projects is completed, the loan can be paid.
According to the central bank report, it was directed by the
Board to take security equal to the investment while disbursing the loan. But,
only Tk 90 crore of collateral (land and building) was taken against the funded
loan of Tk 188 crore. The board was not informed of the investment with less
security.
According to the report, Shahjalal Bank could not provide
any information to the central bank's inspection team about the amount of money
invested against specific work orders and the number of bills received in
respect of those work orders.
The report said that the board of the directors of the bank
advised taking a legal opinion before approving funded loans of Tk 188 crore
and non-funded loans of Tk 70 crore and mortgaging 721 khata land. But the bank
did not take into consideration the legal opinion while giving the loan. As no
collateral is taken for new loans, the bank's investment becomes risky.
Comment
Country's both the bourses, Dhaka Stock Exchange (DSE) and
Chittagong Stock Exchange (CSE) today plunged further due to mainly price fall
in large-cap securities.
DSEX, the benchmark index of the Dhaka Stock Exchange (DSE),
slid 65 points, or 1.01 per cent, at 6,413 at the end of the day. The DS30, the
index that consists of blue-chip companies, went down 0.93 per cent to 2,277,
while the DSES, the Shariah-complaint index, plummeted 0.80 per cent to 1,406.
Turnover at the DSE dropped 3 per cent to Taka 1,297 crore
which was Taka 1,343 crore on the previous day.
At the DSE, 26 stocks advanced, 153 declined and 182 did not
show any price movement.
Bangladesh Monospool Paper Manufacturing topped the gainers'
with an 8.64 per cent rise. Fine Foods, Rahima Food Corporation, Eastern
Cables, and Eastern Lubricants also advanced over 5 per cent.
Apex Foods suffered the highest correction, sliding almost
13 per cent. Far East Knitting, BDCOM Online, Navana CNG, and Apex Spinning
declined more than 9 per cent.
The CASPI, the all-share price index of the Chattogram Stock
Exchange, decreased 164 points, or 0.86 per cent to end at 18,895.
Of the issues on the port city bourse, 34 advanced, 104
declined, and 80 remained unchanged.
- BSS
Comment
The Executive Committee of the National Economic Council
(ECNEC) today approved six projects with Tk 7,018 crore.
The meeting was held under the chairmanship of ECNEC
Chairperson and Prime Minister Sheikh Hasina on Tuesday (October 11).
The premier joined the meeting virtually from her official Ganabhaban residence here while ministers, state ministers, planning commission members and secretaries concerned were connected to it from the NEC Conference Room in the city's Sher-e-Bangla Nagar area.
After the meeting, Planning Minister MA Mannan gave details
in the press conference.
thousand 362 crore 63 lakh will come from the government
funding, Tk 2 thousand 386 crore 48 lakh from foreign funding and Tk 269 crore
62 lakh from the organization's own funding.
Comment
As the Ekushey Boi Mela (Book Fair) 2024 crossed its seventh day yesterday, publishers and book sellers are hopeful for increased sales and public engagement, despite not yet reaching their anticipated sales targets. The Dhaka Metro Rail has infused the fair with a new vibrancy, making it more accessible for visitors from distant areas like Uttara, Mirpur, and Motijheel. Ovi Islam, from Farmgate, shared his positive experience of using the metro rail to bypass traffic jams, despite the initial long wait for tickets.
Country's both the bourses, Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) today plunged further due to mainly price fall in large-cap securities. DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), slid 65 points, or 1.01 per cent, at 6,413 at the end of the day. The DS30, the index that consists of blue-chip companies, went down 0.93 per cent to 2,277, while the DSES, the Shariah-complaint index, plummeted 0.80 per cent to 1,406.