Govt adjusts price of fuel oil

The government has refixed the price of fuel oil through adjusting the price of refined and imported/purchased diesel, kerosine, octane and petrol at the consumer level considering the uptrend of fuel oil price in global market under the current world situation.

The new price of fuel oil will be made effective on the fuel oil of Bangladesh Petroleum Corporation (BPC) and the Eastern Refinery Limited, said a handout of the Energy and Mineral Resources Division of the Ministry of Power, Energy and Mineral Resources on Friday.

It said that after 12:00 of August 5 night and within 40 kilometer radius of the depot, the retail price of diesel at consumer level will be Taka 114 per liter, kerosine at Taka 114 per liter, octane at Taka 135 per liter while petrol at Taka 130 per liter.

State Minister for Power Energy and Mineral Resources Nasrul Hamid has said that the people-friendly Awami League government always take decision considering the ease and comfort of the common people.

He said the government did not take decision of not hiking fuel oil price as long as it was possible. Under the present circumstances and finding no other alternate way, the government had to go for price adjustment of fuel oil.

Earlier on April 2016, the government reduced the price of fuel oil. If the situation comes stable, the government would then consider re-adjusting the price of fuel oil.

Different countries of the world including the neighboring countries are regularly adjusting the price of fuel oil considering uptrend of fuel oil price in global market. On May 22, the price of diesel in Kolkata was fixed at 92.76 Indian Rupee per liter while that of petrol at 106.03 Indian rupee per liter which is still in force there.

If that price is converted to Taka, then the price of diesel would be Taka 114.09 per liter while that of petrol at Taka 130.42 per liter (considering one RS equal to Taka 1.23). 

It means that diesel was being sold in Bangladesh by Taka 34.09 less per liter compared to Kolkata while petrol was being sold by Taka 44.42 per liter compared to Kolkata.

Since the price of fuel oil was less in Bangladesh, there was a chance of smuggling of fuel oil for which it was the demand of time to raise the fuel oil price, added the handout.

It is mentionable that the Bangladesh Petroleum Corporation (BPC) has incurred a loss of Taka 8014.51 crore in fuel oil selling over the last six months from February to July this year.

So, it has become indispensable to make rationale adjustment of fuel oil price to make normal the import operations of BPC under the global fuel oil market situation.