First-ever hearing on jet fuel pricing today
Staff Reporter :
The Bangladesh Energy Regulatory Commission (BERC) has initiated the process of fixing the prices of petroleum products through hearings, similar to other energy utilities like natural gas and electricity.
The commission is set to hold its first-ever hearing on Sunday to determine the price of Jet A-1 fuel. For years, the state-run Bangladesh Petroleum Corporation (BPC) has independently set the price of aviation fuel for both domestic and
international flights.
Changes in jet fuel prices typically lead to adjustments in air ticket prices for both domestic and international routes, according to sources.
The BPC has submitted a proposal to the BERC to align jet fuel prices with fluctuations in the international fuel market. The corporation has also proposed adjusting the price of furnace oil, although the BERC has yet to schedule a hearing for this.
As of now, the BPC has not proposed fixing the prices of other petroleum products, such as diesel, kerosene, octane, and petrol.
On March 1, the government fixed the prices of diesel and kerosene at Tk105 per litre, octane at Tk126 per litre, and petrol at Tk122 per litre for March, under the automatic fuel pricing formula. These prices remain unchanged from February.
The Energy and Mineral Resources Division (EMRD) under the Ministry of Power, Energy and Mineral Resources (MPEMR) also issued a gazette regarding the petroleum prices for March.
The government introduced the automatic fuel pricing formula on March 7, 2024.
Typically, the government uses Platts’ oil product assessments or benchmarks to determine the prices of refined oil products, and for crude oil, it refers to S&P Global Platts’ Dated Brent benchmark when purchasing petroleum products from the international market.