The government has announced another increase in the retail prices of diesel, kerosene, petrol, and octane for the month of June.
According to a gazette notification issued on Thursday night, the prices of diesel and kerosene have been raised by Tk 0.75 per litre, bringing them to Tk 107.75 from the previous Tk 107.
Petrol prices have been increased by Tk 2.50 per litre to Tk 127, while octane prices have similarly been raised by Tk 2.50 per litre to Tk 131. The new prices will take effect on Saturday, June 1.
This marks the fourth adjustment of fuel prices as part of the government's automated pricing system, which aligns local fuel prices with international market rates.
The Energy and Mineral Resources Division set these new prices through a gazette notification in accordance with government policy.
Despite a decrease in global petroleum prices, the local increase is attributed to the devaluation of the taka against the US dollar. The automated pricing mechanism was first implemented on March 7, following the issuance of "Fuel Pricing Guidelines" on March 1.
These guidelines stipulate that local fuel prices will fluctuate monthly in line with international prices.
In addition to setting fuel prices, the Bangladesh Energy Regulatory Commission (BERC) also adjusts the prices of liquefied petroleum gas (LPG) monthly based on international market trends.
According to sources at the Bangladesh Petroleum Corporation (BPC), the country's annual demand for fuel is approximately 7.5 million tons, with about 75% of this demand being for diesel. Diesel is predominantly used in agricultural irrigation, transportation, and generators.
The pricing adjustments for diesel, kerosene, petrol, and octane are determined by the Energy and Mineral Resources Division, while the prices of jet fuel and furnace oil are regularly adjusted by BPC.
The Energy Division noted that, like many other countries including neighboring India, fuel prices in Bangladesh are now reviewed and adjusted on a monthly basis. For context, diesel in Kolkata is currently priced at 90.76 rupees (approximately Tk 125.70) per litre, and petrol at 103.94 rupees (approximately Tk 143.96) per litre.
This automated pricing process was introduced as part of the conditions for a $4.7 billion loan from the International Monetary Fund (IMF). With this system, any changes in international fuel prices will be reflected in the local market, ensuring timely adjustments to retail prices.
BDST: 1237 HRS, MAY 31, 2024
MN
