The consumers have to pay extra money in procuring fuel including octane, petrol, kerosene, and diesel from today (Saturday) as the government has raised its prices despite a decrease in the international market compared to last month.
As per an announcement by the government, the price of diesel and kerosene has increased by Tk 0.75 to Tk 107.75 per litre from the existing Tk 107. However, the price of petrol has been set at Tk 127 per litre, up by Tk 2.50 from Tk 124.50 per litre. Similarly, the price of octane has been set at Tk 131 per litre, up by Tk 2.50 from Tk 128.50 per litre from today (June 1).
According to a gazette notification issued on Thursday night, the Ministry of Energy and Mineral Resources Division introduced the new automated prices based on the governments decision on Thursday.
Presently, the price of Brent crude in the international market is $81.74 per barrel, compared to $85.83 per barrel in April. Thus, according to the automated formula, the price of fuel oil in the domestic market should have decreased.
On March 1, the government issued "Fuel Pricing Guidelines" through a gazette notification to set an automated price for petroleum fuel across the country. According to these guidelines, local prices will fluctuate in line with international prices, and such prices will be announced monthly by the government for a one-month tenure.
"The prices of fuel oils will be calculated based on the international market price, the exchange rate, customs duties, the Bangladesh Petroleum Corporations profit margin, transport costs, and others," as per the Fuel Pricing Guidelines. However, there is no indication that the government can bypass this rule.
Consumers experienced fuel price hikes in the last three months following the automated price formula introduction, with only one instance of a lower price in the last four months.
Meanwhile, the Energy and Mineral Resources Division explained that although the prices of petroleum decreased in the global market, the devaluation of the taka against the US dollar has caused an increase in fuel prices locally.
