Fuel prices cut by Tk2 per litre

The government has reduced the prices of all major fuels by Tk2 per litre for January, lowering the rates of diesel, kerosene, petrol and octane in the domestic market.

Under the new pricing, diesel will sell at Tk102 per litre, kerosene at Tk114, petrol at Tk118 and octane at Tk122, according to a notification issued by the Energy and Mineral Resources Division on Wednesday night.

The revised prices will take effect from Thursday (January 1).

The energy division said fuel prices are being adjusted monthly under the automatic pricing mechanism to align with international market trends. The system was introduced in March last year. Similarly, the Bangladesh Energy Regulatory Commission (BERC) revises liquefied petroleum gas (LPG) prices on a monthly basis.

Bangladesh Petroleum Corporation (BPC) data show the country’s annual fuel demand is around 7.5 million tonnes, of which about 75 percent is diesel, mainly used for agricultural irrigation, transport and power generation. The remaining 25 percent demand is met by petrol, octane, kerosene, jet fuel and furnace oil.

BPC’s overall profit or loss largely depends on diesel sales, while petrol and octane generally generate profits. Previously, BPC adjusted the prices of jet fuel and furnace oil, a responsibility now handled by BERC. Prices of diesel, kerosene, petrol and octane are set by the Energy and Mineral Resources Division.

The government said monthly price adjustments are common practice in neighbouring India and in developed economies.

As part of the International Monetary Fund (IMF) loan conditions, Bangladesh introduced the automatic fuel pricing system on February 29 last year, under which domestic prices rise or fall in line with global market movements.