Fuel perk for officials’ private cars spared cuts
While the fuel allocation for all government vehicles -- including those used by the prime minister and cabinet members -- has been slashed by 30 percent amid the ongoing energy crisis, fuel for the private cars of senior officials remains exempt from these cuts.
As such, the government treasury continues to cover the full cost of fuel and maintenance for these private vehicles.
Following the economic pressures triggered by the US-Israel war on Iran, the cabinet on April 2 decided on a policy of austerity. The Finance Division subsequently urged cost-cutting across various sectors. Following this, the Cabinet Division issued a directive on April 9, instructing all ministries to implement savings in eight specific areas.
However, the decision to exclude the fuel allowance for senior officials’ personal cars from this list has raised serious questions regarding the fairness and effectiveness of the government’s austerity measures.
Officers holding the rank of deputy secretary and above in the administration, armed forces, and judiciary are eligible for interest-free car loans. Additionally, these officers receive Tk 50,000 monthly for fuel and maintenance costs.
According to sources from the Ministry of Public Administration, approximately 11,000 officers currently enjoy this facility.
When approached for comment, at least three officials from the Cabinet Division failed to provide a clear explanation for the exclusion of this sector from the recent austerity drive.
One official, speaking on the condition of anonymity, said, “The fuel allowance for cars purchased under interest-free loans is not included in the current austerity measures. However, the purchase of new cars under this facility will be temporarily suspended.”
When asked why fuel allowance for cars purchased with interest-free loans was excluded from the austerity measures, a senior official from the Finance Division said, “The government has not decided to cut costs in this sector, so it was not included.”
In response to further questioning, he added, “Instructions have been issued exactly as the government decided. It is the government that determines what is appropriate or inappropriate; I cannot comment on that.”
On April 9, in a letter sent to the Prime Minister’s Office, the Cabinet Division announced a 30 percent reduction in fuel allocations for the PM, ministers, and state ministers. The letter stated that until further notice, cabinet members will receive 12.6 litres of fuel daily, down from the previous 18 litres.
Meanwhile, in a separate office memo, the Cabinet Division notified the secretaries to all ministries and divisions regarding the government’s austerity measures, including cost-cutting in sectors such as training, foreign travel, and meetings or seminars.
According to the directives, fuel consumption for all government vehicles will be reduced by 30 percent on a monthly basis, while interest-free loans for government officials to buy cars will remain suspended.
The purchase of government cars, boats, aircraft, and computers must remain completely suspended.
Also, all government-funded foreign trainings will remain suspended, while internal training costs must be reduced by 50 percent. For meetings and seminars, entertainment expenses must be cut by 50 percent, and overall costs by 20 percent.
Other steps include: 30 percent reduction to travel expenses, and to use of fuel, electricity, and gas in government offices; 20 percent reduction to beautification costs for residential buildings and 50 percent for non-residential buildings; and complete suspension of expenses for land acquisition.
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