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Bangladesh raised fuel prices by about 50% on Saturday, easing the burden of subsidies but increasing pressure on inflation, which has already crossed 7%.

Bangladesh’s $416 billion economy has been one of the fastest growing economies in the world for years.

But the Ukrainian crisis forced the government to seek loans from international institutions, including the International Monetary Fund, as energy and food prices soared, raising import tariffs.

Petrol prices increased by 51.2 percent to 130 taka ($1.38), 95 octane gasoline by 51.7 percent to 135 taka, diesel and kerosene by 42.5 percent, according to a statement issued by the Ministry of Energy and Mineral Resources.

The ministry added that fuel price hikes were inevitable due to international market conditions, adding that the state-run Bangladesh Petroleum Corporation had lost eight billion taka ($85 million) in oil sales in the six months to July.

The Minister of Power, Energy and Mineral Resources said, “The new price may not suit everyone. But we have no choice. People have to be patient.”

He said that if the world price goes down, the price will be adjusted.

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