Bangladesh cuts furnace oil price by Tk 18 a litre

The government has reduced the price of furnace oil amidst a growing demand for cuts in prices of all types of fuel oil.

Senior Correspondentbdnews24.com
Published : 31 March 2016, 01:49 PM
Updated : 31 March 2016, 05:48 PM

The power, energy and mineral resources ministry announced on Thursday a cut of Tk 18 a litre, bringing the price of furnace oil from Tk 60 a litre down to Tk 42.

The new retail price will take effect at midnight, ministry spokesperson Mir Mohammad Aslam Uddin told bdnews24.com.

Furnace oil is usually used to generate electricity.

Businesses have been demanding cuts in prices of other varieties of fuel oils as well but the government has so far been unresponsive.

Despite a global fall in oil prices for well over a year, the government has kept oil prices unchanged to help state-owned Bangladesh Petroleum Corporation to offset some its earlier losses.

Prime Minister Sheikh Hasina recently rejected Finance Minister AMA Muhith and Planning Minister AHM Mustafa Kamal’s proposal to lower prices following demands by top business bodies including the FBCCI and BGMEA.

On Monday, State Minister for Power, Energy and Mineral Resources Nasrul Hamid told bdnews24.com the government had decided to cut the price of furnace oil used in power plants and factories.

Bangladesh raised fuel oil prices in 2013 because of a global hike in oil prices.

As per the prices fixed then, octane is being sold at Tk 99 per litre, petrol at Tk 96, and kerosene and diesel at Tk 68 a litre.

The price of furnace oil had been fixed at Tk 60 a litre, and that has now been cut.

Bangladesh’s annual need for fuel oil rose to over 5 million tonnes a few years ago due to oil-run power plants and an increase in the number of vehicles.