Unveiling the consequence of unprecedented fuel price hike in Bangladesh on consumer travel behavior

Abstract

the policy adopted by the government of Bangladesh to shift from subsidized fuel prices to an international market-based fuel pricing system put a strain on various aspects of people's daily lives. however, this study aims to clarify how rising fuel prices have affected people's travel behavior in the metropolitan city of sylhet. Discrete choice models were estimated using revealed preference data to measure how travel behavior had changed in response to the policy adopted. it is observed that the number of recreational trips and trip length have been reduced significantly after the fuel price increase whereas the change in the number of work trips is marginal. since the price of motorcycle fuel (petrol) has grown by around 51% while the price of cNG has only increased by 7%, motorcycle riders are found to switch to sustainable transport options such as shared cNG-powered auto rickshaws. the changes observed in travel behavior patterns in response to fuel price increases are found to be associated with consumer socioeconomic factors (gender, age, income, and education) and vehicle ownership. the findings can be of interest to policymakers to shed light on improvements in city dwellers' lives and control environmental pollution.