Staff Correspondent

'Major changes are coming to fuel oil prices in Bangladesh from tomorrow (Thursday),' State Minister for Power, Energy and Mineral Resources Nasrul Hamid has said.

The changes are going to be made through the adjustment of prices every month keeping parity with the prices in international oil market under a new automation method. At the same time, the prices of fuel oils will decline, he said.

The state minister said it while visiting the despatch terminal of Dhaka-Chattogram Fuel Oil Pipeline Project of Bangladesh Petroleum Corporation (BPC) at Patenga in Chattogram on Wednesday (March 6). "We want to give reliable fuel oils at affordable prices. The same thing is also applicable to power and energy. Major changes are coming to the fuel oil prices of Bangladesh from tomorrow (Thursday)," he said.

Hinting that the fuel oil prices would drop further, Nasrul Hamid said, "We're going to start fixing the prices in the first week of each month. Expenses will also decline if we can introduce the automated management and operation system," he said.

The state minister indicated somewhat decline in prices of petrol, diesel, octane and kerosene while making adjustment in prices with the global oil market. However, he didn't make it clear how much the prices would go down.

According to a decision taken on August 30, 2022, each litre of diesel and kerosene at consumer level is being sold at Tk 109, while each litre of petrol at Tk 125 and octane Tk 130.

On March 3 last, Nasrul Hamid hinted at a possible reduction in fuel oil prices from this month.

During a press briefing at his office at the Secretariat, he said the government has concluded the development of an automated fuel oil pricing formula.

The International Monetary Fund (IMF) has advised Bangladesh to adjust fuel oil prices every month.

This formula aligns with the IMF's recommendations and the government is implementing it, said the state minister.

Nasrul indicated a reduction in fuel oil prices, citing the downward trend observed in global markets.

He said, "Fuel oil is now available at a somewhat affordable price in the global market. The rates will be slightly reduced in the new announcements this month." The state minister added that the government will readjust the prices every month from now on.

Nasrul said, "The price of diesel per litre in Kolkata is now Tk 133. And in Bangladesh Tk 109. If the price falls too low, the fear of smuggling will increase."