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The government on Tuesday said fuel oil prices across different categories will remain unchanged throughout April for the second month in a row, despite a major global supply crisis sparked by the Middle East war.
The Ministry of Power, Energy and Mineral Resources issued an order in this regard.
As per the order, at the consumer level, diesel price per litre will be Tk100, kerosene price per litre will be Tk112, petrol price per litre will be Tk116, and octane price per litre will be Tk120 in April, the same as in February and March.
According to the Bangladesh Petroleum Corporation (BPC), diesel is now being imported at around Tk198 per litre due to a nearly 98% surge in global prices over the past month.
If the global rate stays the same through April, the government will have to spend Tk5,000 crores on diesel subsidy alone to reduce prices for consumers. The government is also importing octane for Tk150.72 per litre, around Tk30 more than what consumers have to pay.
Officials started adjusting fuel oil prices with international rates every month in March 2024 in a bid to meet IMF bailout requirements.
The Bangladesh Energy Regulatory Commission (BERC) updates prices for jet fuels and furnace oil every month, while the Energy and Mineral Resources Division updates the rates for diesel, octane, kerosene and petrol.
According to BPC, the country’s annual fuel oil demand is around 75 lakh tonnes, 75% of which is met by diesel and the other 25% by other types of refined oil. Diesel is used for irrigation, public transports and industrial power generation.
Jet fuel is used in the aviation sector and furnace oil in power plants. Octane, and petrol are used in cars used by wealthy individuals and organisations, allowing regulators to categorise these as luxury items, and keep rates high.
