The government has reduced the prices of all types of fuel in the domestic market through an automatic pricing mechanism aligned with global markets.
For February, the prices of diesel, kerosene, petrol and octane have each been cut by Tk 2 per litre.
Under the revised rates, diesel now costs Tk 100 per litre, kerosene Tk 112, petrol Tk 116 and octane Tk 120 per litre.
The Energy and Mineral Resources Division issued a notification to this effect late on Saturday night. The new prices came into force on Sunday, 1 February.
Officials said the government introduced an automatic fuel pricing system in March last year to keep domestic prices in line with international markets.
As a result, new prices are announced every month. In addition to fuel oil prices, the Bangladesh Energy Regulatory Commission (BERC) sets monthly prices for liquefied petroleum gas (LPG) in line with global trends.
According to sources at Bangladesh Petroleum Corporation (BPC), the country’s annual demand for fuel stands at around 7.5 million tonnes.
Diesel accounts for approximately 75 per cent of total consumption, while the remaining 25 per cent is met through petrol, octane, kerosene, jet fuel, furnace oil and other petroleum products.
Diesel is mainly used for agricultural irrigation, transport and power generators. BPC consistently makes a profit on the sale of petrol and octane.
Previously, BPC regularly adjusted the prices of jet fuel used in aviation and furnace oil used in power plants. These prices are now reviewed monthly by BERC, while the prices of diesel, kerosene, petrol and octane are set by the Energy and Mineral Resources Division.
The energy division noted that fuel prices are reviewed on a monthly basis in neighbouring India as well as in developed economies.
The automatic fuel pricing mechanism was announced on 29 February last year as part of the conditions attached to a loan from the International Monetary Fund (IMF).
Under the system, domestic fuel prices fall when international prices decline and rise when global prices increase.