Country’s first automated fuel pricing starts today
Staff Reporter :
The government, for the first time, has automated fuel pricing to align with the international market, resulting in a reduction of diesel, octane, and petrol prices by Tk 0.75, Tk 4, and Tk 3 respectively compared to their previous rates.
The Ministry of Power, Energy, and Mineral Resources on Thursday issued a gazette notification revealing the newly automatically determined prices.
According to the notice, the price of diesel and kerosene per liter has decreased from Tk 109 to Tk 108.25, octane from Tk 130 to Tk 126, and the price of petrol has decreased from Tk 125 to Tk 122.
As a result, the prices of diesel and kerosene have reduced by Tk 0.75, octane by Tk 4, and petrol by Tk 3 at consumer level. The new prices will be effective from March 8, the ministry said.
According to the notice, the automatic adjustment of fuel prices was coordinated following the directive issued by the Department of Fuel and Mineral Resources on February 29.
The guideline was formulated based on the price structure announced on October 2 last year for diesel, kerosene, octane, and petrol.
During this time, premiums on petroleum products in the international market have increased due to the COVID pandemic, the Russia-Ukraine war, ongoing unrest in the Middle East, and rising sea freight, insurance, and bank interest rates.
Consequently, the value of the local currency has depreciated against the US dollar, and volatility in the global market has affected petroleum (mainly diesel) prices.
According to the guidelines, from now on, the sales price will be aligned with the purchase price of petroleum products every month, taking into account the actual usage of octane and petrol in personal vehicles in the country.
Octane and petrol, widely used in vehicles across the country, are priced higher than diesel due to their classification as luxury items. Therefore, considering the reality, the price of octane and petrol is kept higher as luxury goods compared to diesel, the notice said.
The guidelines encompass various factors such as international prices, moving average prices, premiums, operational expenses, financing, administrative and maintenance costs, trade VAT, freight pool, dealer commissions, transportation costs, and development fund and company margins.
When determining the price of any petroleum fuel, all expenses, including international market prices, import taxes, advance income taxes, VAT, operational expenses, financing, administrative and maintenance costs, BPC’s margins, VAT, and sales and distribution costs, will be considered before setting the price.
Earlier, State Minister for Power, Energy, and Mineral Resources Nasrul Hamid stated that the government plans to regularly adjust fuel prices based on global market rates.
“We aim to revise fuel prices monthly. If adjustments commence this month, prices may decrease in accordance with global trends,” he remarked.
Regarding the potential decrease in oil prices, Nasrul emphasised the government’s focus on reducing diesel prices, given its widespread use across various sectors, particularly in transportation.
He acknowledged that price adjustments would impact fuel consumers, including those in the transportation sector.