Current price too is a bit high for common people: Nasrul Hamid
Government’s decision of reducing the prices of diesel, petrol, octane and kerosene by Tk 5 is being critrised variously. After the decision was announced Monday night, many people are saying this price reduction won’t bring in much benefit.
Right after the decision of price reduction was announced on Monday night, state minister for power, energy and mineral resources Nasrul Hamid wrote on his verified Facebook page that the latest price too is a bit high for common people.
However, the state minister reassured, if prices decrease in the global market, there will be adjustments in the local market too.
He advised people to be patient as well.
Prices of diesel and kerosene were raised by Tk 34 per liter while, petrol and octane prices went up by Tk 46 from 6 August. Following that transportation cost rose up by 22 per cent.
Earlier, diesel and kerosene prices were increased by Tk 15 per litre in November, 2021. Transportation cost went up by 27 per cent back then as well.
On Sunday, the duty on importing diesel was brought down from 10 per cent to 5 per cent. The 5 per cent advance tax was revoked. But, diesel is selling at more than US$ 140 in the global market. That's why, the Bangladesh Petroleum Corporation (BPC) is still in deficit after slashing the duty.
The state minister in his post from Monday said, “The current price of diesel in the international market is US$ 147.62 per barrel. As per that rate, diesel price stands at Tk 128.61 per litre. That means, if diesel is sold at Tk 109 per litre, BPC will incur a loss of Tk 19.61 on a litre.”
The state minister wrote, “Let me share a piece of information, Bangladesh Petroleum Corporation (BPC) has suffered a loss of more than Tk 80.14 billion (8,014.51 crore) on the sales of fuel oil (all items) in the past six months (from February to July 2022).
Nasrul Hamid also highlighted the list of latest fuel prices after the price reduction. He said, “Since after 12.00am today (29 August, 2022), within 40 kilometre radius of the depot, retail price of diesel will be Tk 109 per litre, kerosene Tk 109, octane Tk 130 and petrol Tk 125 on the consumer level.
"Prices of all kinds of fuel oil reduced in the markets of the country. Rest assured, we’ll regularly adjust the prices in the country with those in the global market," he added.
The state minister stated in his post that this price reduction won’t bring in much profit in the end.
Nasrul Hamid wrote, “We still believe, the current price too will be a bit high for the common people. It’s a request to all to be patient. Hopefully, the situation won’t be this tough for long. Pro-people Awami League government under no circumstances, wants to do something that causes sufferings to people. Finding no other alternatives, we were compelled to adjust the fuel oil price because of the global situation.”