Fuel Price Surge: Furnace oil now Tk 113.54

The Bangladesh Energy Regulatory Commission (BERC) has increased the retail price of furnace oil by Tk18.85 per litre, bringing the new rate to Tk113.54 per litre for May.

The revision came into effect on Monday and will remain in force until further notice.

According to a notification from BERC, the revised price applies to furnace oil supplied by the Bangladesh Petroleum Corporation (BPC) to the Bangladesh Power Development Board (BPDB), government and private power plants, industrial users, and other consumers.

The regulator said the adjustment was made under the provisions of the Bangladesh Energy Regulatory Commission Act, 2003, based on the average May Platts benchmark price for refined furnace oil and the free-on-board (FOB) cost of imported crude oil.

This latest increase follows a previous BERC revision in April, when furnace oil prices were raised by Tk24.59 per litre, taking the rate from Tk70.10 to Tk94.69 per litre.

The earlier hike was attributed to volatility in international oil markets amid Middle East tensions and supply disruptions.

Furnace oil is widely used in power generation, industrial boilers, and captive power plants across Bangladesh. Industry experts warn that rising fuel costs could push up electricity generation expenses and increase production costs across multiple sectors.

BERC noted that its February guideline allows for quarterly or ad hoc adjustments to furnace oil prices in response to global market changes, ensuring domestic fuel costs reflect international fluctuations.