BERC raises furnace oil price to Tk 108.78 a litre for October

Furnace oil is getting costlier again, with the Bangladesh Energy Regulatory Commission raising its price by Tk 11.92 a litre for power plants and industries.

Under the new order, Bangladesh Petroleum Corporation’s supplied furnace oil will cost Tk 108.78 a litre.

BERC announced the new rate on Wednesday, effective from midnight until its next order.

The rate applies to the Bangladesh Power Development Board, public and private power plants, industries and other consumers.

The previous price, set on Sept 6, was Tk 96.86 a litre.

BERC said the new rate was calculated using the average Platts rate published from Aug 29 to Sept 28, the CIF price of crude oil imported in September and the US dollar exchange rate.

Platts is a benchmark used to price petroleum products internationally, while CIF covers the product, insurance and freight costs.

The commission said it adjusted the price under Sections 22(b) and 34 of the Bangladesh Energy Regulatory Commission Act 2003.

Following a public hearing on Feb 22 on proposals from BPC and oil marketing companies, BERC had revised the consumer price, BPC’s storage and supply charges, marketing companies’ charges and integrated transport rates.

That order allowed quarterly or need-based price adjustments.

The price was cut by Tk 15.90 to Tk 70.10 on Feb 22, then raised by Tk 24.59 to Tk 94.69 on April 12. It rose another Tk 18.85 to Tk 113.54 on May 18 -- a Tk 43.44 increase in two hikes within 36 days.

It was then cut by Tk 4.44 on Jun 30, Tk 8.71 on Jul 30 and Tk 3 on Sept 6.

For October, BERC has now raised it by Tk 11.92 to Tk 108.78.