Bangladesh has reduced the price of furnace oil used for electricity generation by Tk8.71 per litre, marking the latest monthly adjustment in line with movements in international fuel markets.
Under a new decision by the Bangladesh Energy Regulatory Commission (BERC), the price has been lowered from Tk109.10 to Tk100.39 per litre. Therevised rate will take effect from midnight on Thursday (30 July).
In an order issued on Thursday, the regulator saidthe new price reflects changes in global oil prices.
The previous adjustment came on 30 June and took effect from 1 July, when the price was reduced fromTk113.54 to Tk109.10 per litre. Before that, furnace oil prices had been increased by Tk24.59 per litre ina single revision.
BERC first introduced a pricing mechanism for furnace oil following a public hearing in February this year. Since then, the commission has reviewedand adjusted prices on a monthly basis to align with fluctuations in the international market.
Furnace oil remains one of the main fuels used for electricity generation in Bangladesh. Industryobservers say the latest price cut is expected toreduce operating costs for furnace oil-fired power plants to some extent.
However, BERC’s order did not indicate whether the lower fuel price would lead to any reduction in retailelectricity tariffs.