Power, industrial goods to get costlier as furnace oil price rise by 35%

Economists and industry insiders warn this sharp spike will have a cascading effect on the economy

Electricity bills and the prices of industrial goods are set to climb as the Bangladesh Energy Regulatory Commission (BERC) has increased furnace oil prices by about 35 percent.

Following an increase of Tk 24.59 per litre, the new rate has risen to Tk 94.69, effective from midnight on Sunday, according to a BERC press release.

Economists and industry insiders warn that this sharp spike will have a cascading effect on the economy.

Furnace oil is a primary fuel source for a significant number of independent power plants (IPPs) and captive power units in factories.

The IPPs often account for a third of power consumed nationally.

A hike of this magnitude is expected to immediately inflate power generation costs, which may eventually be passed on to the general public through higher retail electricity tariffs.

The price hike order followed a public hearing on proposals submitted by the Bangladesh Petroleum Corporation (BPC) and oil marketing companies.

Since no crude oil was imported in March 2026, a committee formed on Mar 15 recommended the adjustment based on the average international Platts rate for refined furnace oil and the current US Dollar exchange rate.

Under a BERC order issued in February, furnace oil prices are subject to adjustment every three months based on global market fluctuations.