Bangladesh will adjust domestic oil prices with international market from July, says finance minister

Finance Minister Abul Maal Abdul Muhith has said the government will start adjusting domestic oil prices in keeping with the slump in international market.

He made the statement at the post-budget press conference at Osmani Memorial Auditorium in Dhaka on Friday.

To a question, the minister said: “We’ve not yet made any adjustment after oil prices declined in the international market. 

“Our (Bangladesh Petroleum Corporation) is buckling under huge loan burden. It had become unviable.

“I think they have almost resolved the loan issue. We’ll start the process next month to rationalise (oil prices).”

“We’ll try after the budget to bring it to a reasonable level.”

Muhith said government’s last decision was to maintain a difference between the prices of oil in the local and international markets.

It last raised fuel prices in January 2013 when petrol and octane got dearer by Tk 5 a litre, and diesel and kerosene by Tk 7.

It did not adjust fuel prices following the drastic fall in the international market so that BPC could cover the losses it had sustained by giving subsidy.

The state-owned corporation is making profit in the last six months.