Furnace oil price hiked to Tk 108.78

The Bangladesh Energy Regulatory Commission (BERC) has raised the price of furnace oil by Tk 11.92 per litre for October, taking the rate to Tk 108.78.

The new price, applicable to furnace oil supplied by Bangladesh Petroleum Corporation (BPC), will take effect at midnight on Wednesday and remain in force until further notice.

The revised rate applies to the Bangladesh Power Development Board, public and private power plants, industries and other consumers.

The previous price was Tk 96.86 per litre, set on September 6.

BERC said the new rate was calculated based on the average Platts price published between August 29 and September 28, the CIF price of crude oil imported in September and the US dollar exchange rate.

Platts is an international benchmark for petroleum product prices, while CIF refers to the cost of the product, insurance and freight.

The commission said the adjustment was made under Sections 22(b) and 34 of the Bangladesh Energy Regulatory Commission Act 2003.

Following a public hearing on February 22 on proposals submitted by BPC and oil marketing companies, BERC had revised furnace oil-related consumer prices, BPC’s storage and supply charges, marketing companies’ charges and integrated transportation rates.

The order allows prices to be adjusted quarterly or when necessary. Furnace oil prices have fluctuated significantly this year. The rate was cut by Tk 15.90 to Tk 70.10 on February 22 before rising to Tk 94.69 on April 12 and Tk 113.54 on May 18.

The price was subsequently reduced by Tk 4.44 on June 30, Tk 8.71 on July 30 and Tk 3 on September 6.

With the latest increase, the October rate stands at Tk 108.78 per litre, adding to fuel costs for power plants and industrial consumers.