The government has reduced the price of diesel and kerosene by Tk. 2.25 to Tk. 106 per liter. However, the price of petrol and octane remains unchanged. The new rates will be effective from April 1 (Monday).
A notification in this regard was issued by the Ministry of Energy and Mineral Resources on Sunday (March 31).
Earlier, fuel oil prices were adjusted on March 7. Then the gazette was published by reducing the price of diesel and kerosene per liter from Tk. 109 to Tk. 108.25, petrol from Tk. 125 to Tk. 122, octane from Tk. 130 to Tk. 126.
And unprecedented price increase on the night of August 5, 2022. The order issued by Bangladesh Petroleum Corporation (BPC) increased the price of diesel and kerosene by Tk. 34 per liter and petrol and octane by Tk. 46 per liter. Then the price of diesel and kerosene was fixed at Tk. 114 per liter, petrol at Tk. 135 and octane at Tk. 135. Public transport fares rose by a maximum of 22 percent following the price hike. Before that, the price of diesel and kerosene was increased from Tk. 65 to Tk. 80 per liter in November 2021. At that time also the transport fare was increased by about 27 percent.
After that unprecedented price increase, fuel prices were adjusted on August 30, 2022. On that day, diesel and kerosene were reduced from Tk. 114 to Tk. 109, petrol from Tk. 130 to Tk. 125, octane from Tk. 135 to Tk. 130.
The government has decided to come out of subsidizing fuel prices. There is also pressure from the IMF. The notification of 'Guidelines for Automatic Pricing of Fuel Oil' was published on the night of February 29. According to that formula, the price will be adjusted with the international market every month. According to the gazette commission of BPC and others will remain unchanged only the variation of import price will be more or less every month.
Octane and petrol are used more in private vehicles as their price is always higher than diesel as a luxury item. According to the formula, while determining the price of octane, the difference with diesel should be at least Tk. 10 per liter so that the 'α' factor will be applied in the pricing formula.