State minister hints at reducing fuel oil price
Fixing the fuel oil price regularly will start this week, which is now awaiting at the energy department for the approval from Prime Minister Sheikh Hasina.
Speaking about this, State Minister for Power, Energy and Mineral Resources Nasrul Hamid indicated a reduction at the fuel oil price.
He said that the oil is available at a somewhat affordable price in the global market now. It will be affordable through the price announcements this month.
The price will be adjusted every month, Nasrul stated while speaking to newspersons at the Secretariat on Sunday afternoon.
Regarding fixing the fuel oil prices, the state minister said that the price of fuel oil is likely to be adjusted within a few days. It cannot be confirmed before the proposal is approved. However, fuel oil is expected to be supplied at an affordable price.
Earlier on 29 February, guidelines were published setting the formula for automatic pricing of fuel oil.
In response to the question of how much the price could be reduced, the state minister reiterated that the new price will be set according to the formula.
Expressing the hope that it could reduce the price, he said that earlier the agencies were asked why they don’t reduce the price at the domestic market when the prices in the global market reduce. Now that the matter is settled; the prices will be adjusted regularly. If the price goes up again in the global market, then the adjustment will be made accordingly. If it reduces further in the next month, the price in the country will also be reduced. Fuel oil prices are adjusted daily in neighbouring India. Many countries fix different rates for different cities, the state minister informed the media.
State minister Nasrul Hamid, however, stressed that the price of fuel oil in the neighbouring country should also be taken into consideration. He said the price of diesel is Tk 133 per litre in Kolkata while the price in Bangladesh is Tk 109.
Adding that there is a risk of oil smuggling if the price is too low in the country, he said this also must be considered. If the price becomes more affordable, the apprehension will increase, he added.
Responding to a question on whether the transport fare will decrease if the fuel oil price decreases, the state minister said that the sectors that are involved with fuel oil must also adjust.
Nasrul said the organisations that are responsible for their oversight should take this issue into account. If the fuel price is increased by 5 per cent, the transport fare is increased by 15 to 20 per cent. The state minister thinks it is not right.
He said, if the price of fuel oil is fixed every month at an affordable rate, then adjustments should be made in all the related sectors including transport.