Oil price and its impact on Bangladesh economy

Abstract

This paper showcases the effect of oil pricing in Bangladesh’s economy. Previously oil prices especially crude oil prices skyrocketed because of syndicates and high demand across the globe. Recently owing to electric vehicles and internal conflict between the syndicates, crude oil price dropped to such a level that a gallon of oil is now cheaper than water. However in Bangladeshi retrospect the result of this reduced price is hardly perceived as oil prices remain unchanged. This poses an alarming threat on Bangladeshi economy in a global context. While other Nations benefit from the reduced oil prices and are competing more aggressively against Bangladeshi products leveraging this cushion of arbitration of pricing. So the industrial sector, the transportation sector and energy sector bears the brunt from this price discrepancy. My study aims to effectively highlight the reasons for this price gap, strategies to overcome this problem and hopefully shed light on the impact of oil pricing on our economy in present and near future. I have used secondary data available from websites, interviews and articles online to gather data and used quantitative statistical tools to analyze according to the needs and scope of this report.