Prices of Diesel, Petrol and Octane reduced
Prices of diesel, petrol, octane and kerosene have come down. A liter of diesel and kerosene has been reduced from Tk. 109 to Tk. 108.25, petrol has been reduced from Tk. 125 to Tk. 122 and octane has been reduced from Tk. 130 to Tk. 126.
The new rates will be effective from 12pm on Thursday (March 7).
Fuel prices were adjusted last on August 30, 2022. On that day, diesel and kerosene were reduced from Tk. 114 to Tk. 109, petrol from Tk. 130 to Tk. 125 and octane from Tk. 135 to Tk. 130.
And unprecedented price increase on the night of August 5, 2022. The order issued by Bangladesh Petroleum Corporation (BPC) increased the price of diesel and kerosene by Tk. 34 per liter and petrol and octane by Tk. 46 per litre. Then the price of diesel and kerosene was fixed at Tk. 114 per litre, petrol at Tk. 130 and octane at Tk. 135. Public transport fares rose by a maximum of 22 percent following the price hike. Before that, in November 2021, the price of diesel and kerosene per liter was increased from Tk. 65 to Tk. 80. At that time also the transport fare was increased by about 27 percent.
The government has decided to come out of subsidizing fuel prices. There is also pressure from the IMF. The “Guidelines for Automatic Pricing of Fuel Oil” notification was released on the night of February 29. According to that formula, the price will be adjusted with the international market every month. According to the gazette commission of BPC and others will remain unchanged only the variation of import price will be more or less every month.
Octane and petrol are used more in private vehicles as their price is always higher than diesel as a luxury item. According to the formula, while determining the price of octane, the difference with diesel should be at least Tk. 10 per liter so that the 'α' factor will be considered in the pricing formula.