Petrol, octane prices slashed by Tk 6 per litre; diesel, kerosene by Tk 1.25 per litre

The government has slashed prices of petrol and octane by Tk 6 per litre, as well as prices of diesel and kerosene by Tk 1.25 per litre under the automatic fuel pricing system to adjust fuel prices in light of global fuel prices.

The new price will come to effect on 1 September. The Ministry of Power, Energy and Mineral Resources issued a gazette on the matter on Saturday.

As per the gazette, the petrol price decreased to Tk 121 per litre from 127 per litre and octane price fell to Tk 125 per litre from 131 per litre to price, while diesel and kerosene prices dropped to Tk 105.50 per litre from Tk 106.75 per litre.

The government released the Automatic Fuel Pricing Guidelines on 29 February detailing the price fixing mechanism. It said octane and petrol are considered luxury items since this gasoline is largely used in personal vehicles, which is why octane and petrol prices remain higher than diesel price.

BPC is the lone fuel oil importer and distributor of the country. They regularly adjust the price of furnace oil used in power stations and jet fuel used in aircraft. The BPC profits from selling these two fuel oils all the time.

However, the power division fixes the prices of diesel, petrol and octane by executive orders.