No rise in fuel oil prices
The government has not increased fuel oil prices despite global energy markets turning volatile due to the spread of war across the Middle East and prices rising to more than double, keeping rates unchanged for a second consecutive month, with petrol, octane, diesel and kerosene to be sold at existing prices in April.
This decision was announced today, Tuesday, in an official order issued by the Ministry of Power, Energy and Mineral Resources.
According to the order, the consumer-level price of diesel in April has been set at Tk 100 per liter. The price of kerosene is Tk 112 per litre, petrol Tk 116, and octane Tk 120 per litre. These were also the prices in February and March.
Earlier, fuel prices were reduced by Tk 2 per liter in January and by another Tk 2 per liter in February.
Since March 2024, the government has introduced an automatic pricing system for fuel in line with the global market. Under this system, prices are adjusted each month based on the cost of imported fuel in the previous month. Guidelines outlining the formula for automatic fuel pricing were issued on 29 February 2024.
According to the guidelines, octane and petrol—mainly used in private vehicles—are considered luxury items, and therefore their prices are always kept higher than diesel.
Among fuel types, the prices of jet fuel used in aircraft and furnace oil used in power plants are determined by the Bangladesh Energy Regulatory Commission (BERC).
Meanwhile, the prices of diesel, kerosene, petrol, and octane are set by the Energy and Mineral Resources Division through executive orders.
According to Bangladesh Petroleum Corporation (BPC) sources, diesel is currently being sold at Tk 100 per liter.
If adjusted with the current import price, diesel would cost around Tk 200 per liter. Due to not increasing prices, the government will have to provide a subsidy of Tk 50 billion in just one month.
State Minister for Power, Energy and Mineral Resources, Iqbal Hasan Mahmud (Tuku), said in parliament yesterday, Monday, that diesel prices in the global market have risen by 98 per cent in a month. The current import cost of diesel is Tk 198 per litre. Although octane is being sold at Tk 120 per litre, the government’s cost is Tk 150.72 per litre.