The recent fuel price hike and increase in gas price in June will have a domino effect on the entire economy, the Dhaka Chamber of Commerce and Industry (DCCI) said Sunday.

The hikes will have an immediate negative impact on transportation, essential commodities and electricity, it added.

The cumulative impact of the price hike of fuels will cause inflationary pressure on the economy by raising the operating cost of all energy-dependent businesses and industries.

The government Saturday increased the prices of all refined fuel oil products by 42.5 to 52 percent despite the gradual fall in global energy prices.

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Diesel is the most-consumed fuel in Bangladesh, accounting for 73 percent of the country's total fuel consumption. More than 90 percent of the transportation sector is dependent on diesel.

Also, vehicles that are powered by octane and petrol will have to bear an increased cost, the DCCI said. "This will also push up the domestic freight costs, leading to higher prices of essentials across the country."

Another major impact will be on the production cost of agricultural products as diesel is widely used for irrigation purposes.

Recurring fuel and fertiliser price hikes will directly impact the production cost of agricultural products and gradually affect food security, the DCCI said.

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Manufacturing industries are already suffering due to electricity rationing as diesel and liquefied natural gas prices went high globally.

So, the DCCI suggested framing out a long-term strategy, continuing onshore and offshore gas exploration, pursuing energy mix and cost and energy efficient electricity generation.

It also recommended reducing the fuel price as soon as it comes down in the international market considering its negative impact on the economy.