BERC raises furnace oil price by Tk 24.59 per litre

The Bangladesh Energy Regulatory Commission (BERC) has increased the price of furnace oil (HFO). According to the new decision, the price per litre has been raised from Tk 70.10 to Tk 94.69, meaning an increase of Tk 24.59 per litre. The new price will take effect from midnight on Sunday, April 12.

In a press release issued on Sunday, the commission said the price adjustment was made in accordance with Sections 34(4) and 34(6) of the Bangladesh Energy Regulatory Commission Act, 2003. The decision was taken based on proposals from the Bangladesh Petroleum Corporation (BPC) and oil marketing companies, following a public hearing and detailed review.

The release stated that under an order issued on February 22, furnace oil prices are adjusted every three months or as necessary. In continuation of that, as no crude oil was imported in March, the new price was determined considering the average price of refined furnace oil on the international market and the US dollar exchange rate. To this end, a committee formed on March 15 analysed the average price based on the March Platt's index and the exchange rate and recommended a new price for April. The recommendation was reviewed and given final approval at special commission meetings held on April 5 and 12.

The new price is expected to increase costs for power generation, the industrial sector, and fuel-dependent establishments. Analysts believe that if production costs rise at furnace oil-based power plants, the impact may ultimately affect consumers as well.