Staff Reporter :
In line with global market trends, the government has slightly reduced the prices of diesel and kerosene, while petrol and octane have seen a more significant price drop.
The announcement was made by Energy, Road Transport, and Railway Adviser Muhammad Fouzul Kabir Khan during his visit to the Rupsha 800MW Combined Cycle Power Plant in Khulna’s Khalishpur on Saturday.
Effective from 1st September, the new pricing structure will see the cost of diesel and kerosene reduced by Tk 1.25 per litre, while petrol and octane will be lowered by Tk 6 per litre.
According to the Ministry of Power, Energy, and Mineral Resources, this adjustment sets the price of diesel and kerosene at Tk 105.50 per litre, down from Tk 106.75.
Petrol will now be priced at Tk 121 per litre, reduced from Tk 127, and octane will cost Tk 125 per litre, down from Tk 131. This marks a change from the previous month of August, during which fuel prices remained unchanged.
The fuel pricing mechanism, which was established under a directive issued on 29th February, maintains higher prices for petrol and octane compared to diesel.
This is because petrol and octane are primarily used in personal vehicles, while diesel, a necessity for broader market operations, is more sensitive to market fluctuations.
The Bangladesh Petroleum Corporation (BPC) typically profits from the sale of petrol and octane but faces financial challenges with diesel, which accounts for 75 per cent of the country’s fuel consumption.
While the BPC regularly adjusts the prices of jet fuel used in aircraft and furnace oil for power plants, the Ministry of Power, Energy, and Mineral Resources is responsible for setting the prices for diesel, kerosene, petrol, and octane.
Despite the recent reductions in fuel prices, consumers have expressed concerns that while rising oil prices quickly lead to higher costs for goods and services, reductions in fuel prices do not result in a proportional decrease in the prices of essential commodities.
There is growing public expectation that the interim government will take action to ensure that the benefits of lower fuel prices are reflected in the cost of essential items.