Fuel oil prices decrease

The government has reduced the prices of all types of fuel oil in the first month of automated fixing of fuel oil prices.

According to the new price list, the price of diesel has been fixed at Tk 108.25 per litre, kerosene Tk 108.25, octane Tk 126 and petrol Tk 122. The revised prices will be effective from 12:00pm tonight (March 7), said a notification issued by the Energy Division on Thursday afternoon.

According to the new prices, the price of diesel and kerosene has been reduced by 75 paisa per litre, octane by Tk 4 and petrol by Tk 3.

Before fixing the new prices, diesel and kerosene were sold at Tk 109 per litre, petrol at Tk 125 and octane at Tk 126 at the consumer level.

Earlier on February 29, a notification was issued informing about the automatic pricing formula. Consequently, the fuel oil prices have been adjusted today (March 7) through the automated pricing method.

According to sources, the fuel oil prices were adjusted last on August 29, 2022. Later, the premiums, transport fares, insurance and bank interest rates for maritime transportation of fuel products increased massively due to the post-Covid pandemic supply crisis, Russia-Ukraine war, and ongoing tensions in the Middle East. During the said period, the local currency depreciated against the US dollar and there was volatility in the price of fuel oil (mainly diesel) in the global market.

The government has taken a $4.5 billion loan from the International Monetary Fund (IMF). Among the main terms of this loan was the obligation to fix the price of fuel in coordination with international market rates. The IMF has been pressuring the government to fix prices in this new system since last November.

According to the energy ministry, although the price of fuel oil has been adjusted in the country, diesel is currently selling at 92.76 rupees, or Tk 133.57 per litre (1 rupee = 1.44 taka) and petrol at 106.03 rupees, or Tk 152.68 per litre in Kolkata, capital of Indian state of West Bengal. The prices are Tk 24.57 and Tk 27.68 more than Bangladesh respectively.

Mentionable, the price of fuel oil will be adjusted every month from now on in accordance with the international market rates. Earlier, when the price of fuel oil increased in the international market, the government used to sell oil at a lower price in the country by subsidising it. From now on, there will be no government subsidy on fuel oil.