Bangladesh cuts furnace oil price by nearly Tk 16

The Bangladesh Energy Regulatory Commission (BERC) has reduced the retail price of furnace oil by Tk 15.90 per litre, setting the new rate at Tk 70.10, down from Tk 86.

The revised price will take effect from midnight, the commission announced in a statement on Sunday.

BERC said the Bangladesh Petroleum Corporation (BPC) had proposed a revision of furnace oil prices on Jan 20, 2024. Oil marketing companies later submitted proposals seeking adjustments to marketing margins and composite transportation charges.

Public hearings on the proposals were held on Jan 29 this year, and stakeholders were allowed to submit written opinions until Feb 3.

After reviewing the submissions, the commission fixed the new price, according to the statement.

The marketing margin for Padma Oil Company, Meghna Petroleum, Jamuna Oil Company and Standard Asiatic Oil Company has been set at 72 paisa per litre, while the composite transportation charge has been fixed at Tk 1.20 per litre.

Officials at the ministry said the lower furnace oil price could reduce electricity generation costs at some oil-based and captive power plants.