On the plea of the increase in the price of diesel in the international market, the price of diesel sold at Tk. 65 (per liter) has been increased to Tk. 80 per liter. Of this money, 24 taka will go to the government's pocket in the name of VAT-Tax.
Officials of the Energy and Mineral Resources Division think that there would be no need to increase the price of oil if the VAT- tax was reduced.
ATM Selim, General Manager (Accounts) of Bangladesh Petroleum Corporation, told Barta24.com that at present the duty on fuel oil is 10 per cent, VAT 15 per cent, T-VAT and tax a further 5 per cent, or 30 per cent. If the liter is sold at 80 rupees, it will run in the break even.
The BPC official wanted to see more fears of trafficking to India. He said it is being sold at Rs 102 per liter in India. In Bangladeshi rupees the amount stands above Tk. 122. This is still less than Tk. 40 per liter. There is enough fears of diesel smuggling in India. That is why the price has been increased. Although the prices of all products have gone up, the price of diesel has not gone up in the last five years.
He said that in 2016, when the price of oil was 50 dollar per barrel, it was reduced to Tk. 65. Now that diesel has to be bought for 97 dollar.
A statement from the Energy and Mineral Resources Division said that considering the current purchase price, Bangladesh Petroleum Corporation is losing around Tk. 20 crore per day as it sells diesel at Tk. 13.01 per liter and Furnace Oil at Tk. 6.21 per liter. In October 2021, Bangladesh Petroleum Corporation has incurred a total loss of Tk. 726.71.
Energy experts cannot agree with this opinion. They say that now the price is being increased to 97 dollar. But during the Corona period, oil prices fell below 40 dollar. At that time they did not reduce the price. Then let's adjust the amount of money it has earned. People still could not cope with the impact of the corona. Why take a hasty decision at such a time. And why the government has to take so much Tax-VAT from here.
According to BPC sources, since the present government came to power in 2009, the price of diesel has been increased by Tk. 39 in six phases. And at one pahse it has been reduced at the rate of Tk. 3. However, the prices have never been increased so much at once. On January 3, 2013, the highest increase was at the rate of Tk. 7. During the present government, the last time the price of diesel-kerosene was increased from Tk. 7 per liter to Tk. 68 on January 3, 2013. Earlier in 2011, the price of this product was increased in 4 phases. In the first phase, the price was increased from Tk. 2 to Tk. 46 per liter on May 6, in the second phase from Tk. 5 to Tk. 49 on September 19, from Tk. 5 to Tk. 56 on November 11 and from Tk. 5 to Tk. 61 per liter on December 30. And in April 2016, it was reduced by Tk. 3 to Tk. 65.
Professor Shamsul Alam, CAB's energy adviser, told Barta24.com that there were many options not to raise prices. It is completely illegal to increase the price of fuel oil in this way. The Bangladesh Energy Regulatory Commission has the authority to increase or decrease the price of oil. When we went there, we would check and see if there was a loss or if a loss was being shown.
Moshiur Rahman Ranga, president of the Bangladesh Road Transport Owners Association told Barta24.com that the price hike was unprecedented. I have never seen it in my life. The condition of the transport sector is fragile due to Corona. This price increase will have a huge negative impact on it. The government knows the impact of oil prices. It could adjust to rising oil prices. Now the pressure of the movement is coming from all over the country. We have proposed a fare adjustment or a reduction in the price of diesel. If the answer is received, action will be taken accordingly.
He said the distance from Rangpur to Kurigram town is 60 kilometers. A minibus takes about 25 liters of diesel to travel. This will increase the cost by Tk. 375.
According to BPC, diesel is the most used fuel oil. In the 2019-20 financial year, the demand for fuel oil was 55 lakh 3 thousand 91 metric tons. Of this, 40 lakh 23 thousand 409 metric tons was diesel. In that year, the estimated demand for diesel in the agricultural sector was 16 lakh 84 thousand 8 metric tons.