Fuel prices hiked by Tk 2 a litre

The government yesterday increased the prices of all petroleum products by Tk 2 per litre to adjust to the prices in the international market, said Bangladesh Petroleum Corporation (BPC).

BPC Chairman M Muktadir Ali said the government has to count a huge subsidy on petroleum products as the prices in the international market have recently increased. To cut the subsidy a bit, the decision to raise the prices has been taken.

The decision will take effect from today, Ali said.

Retail prices of diesel and kerosene will be Tk 46 per litre while petrol Tk 76 per litre, octane Tk 79 per litre and furnace oil Tk 42 per litre, he said.

Earlier in January 2009, the government reduced the prices of petroleum products by Tk 2 per litre after the prices in the international market decreased.

At present, the government is subsidising Tk 33.44 per litre for diesel, Tk 32.49 per litre for kerosene, Tk 8.02 for octane and Tk 12.96 for furnace oil, said a government statement.

Syed Yusuf Hossain, chairman of Bangladesh Energy Regulatory Commission (BERC), said "The BERC is not aware of the price hike of petroleum products."

Generally the commission's approval is required to increase the prices of petroleum products, but this time the government did not follow it.

Yusuf Hossain added the process of BERC is long, and that could be the reason why the government took the decision without any consultation with the BERC.

News Source: The Daily Star (May 6, 2011)

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