Furnace oil price hiked by Tk 8.39 per litre

The Bangladesh Energy Regulatory Commission (BERC) has raised the price of furnace oil by Tk 8.39 per litre to Tk 108.78, amid a sharp rise in international fuel prices.

BERC said the price was determined based on the average Platts furnace oil rate from August 29 to September 28, the September free-on-board (FOB) price of imported crude oil and the US dollar-taka exchange rate.

The new price, up 8.36 per cent from the previous Tk100.39 per litre, will take effect at 12am and remain in force until the next adjustment, according to a BERC order issued on Wednesday.

The revised rate applies to furnace oil supplied by Bangladesh Petroleum Corporation (BPC) to the Bangladesh Power Development Board, government and private power plants, industrial units and other consumers.

International oil markets, however, turned volatile during the latest pricing period amid disruptions to Middle Eastern oil supplies and shipping through the Strait of Hormuz linked to the ongoing US-Iran conflict.

Platts Dated Brent rose to $114.26 per barrel on 9 September from $89.64 on 28 August, with the benchmark surging amid reduced traffic through the Strait of Hormuz and disruptions to regional supplies.

Although oil prices eased towards the end of September as Middle Eastern exports began recovering, the market remained elevated. Brent settled at $102.59 per barrel on 29 September, while prices remained around 13 per cent higher for the month amid continued supply concerns.

The latest adjustment therefore reverses the downward trend seen over the previous two months, with BERC's new rate reflecting higher international furnace oil and crude prices during the latest review period.