Fuel oil prices to fall in a month

Staff Correspondent

The finance ministry on Wednesday gave nod to an energy division proposal for reducing fuel oil prices in a month based on the formula that prices would be adjusted every three months in accordance with those on the international market.
‘We will decrease oil prices within a month, most likely within this month. The finance ministry has in principle approved our proposal to review and adjust fuel oil prices every three months,’ special assistant to the chief adviser M Tamim told New Age after a meeting with finance adviser Mirza Azizul Islam at the latter’s office.
Tamim said initially they would decrease prices of fuel oils like diesel, kerosene, octane and petrol up to a certain level, which had yet to be decided. ‘We will soon work on how much prices will be decreased.’
He said they would also discuss the issue with the communications ministry as transport fares would have to be reduced after the reduction in fuel oil prices.
‘Initially, we will reduce the price for one month and then follow the formula to review and adjust fuel prices every three months. As per the formula, fuel prices would be adjusted if the import cost of Bangladesh Petroleum Corporation increases or decreases by 10 per cent from the last adjustment,’ he said.
Tamim, however, said the government would require to give some subsidies for diesel and kerosene prices even if their prices increased in future as per the formula as these major fuels are used in agriculture sector and by the rural people.
The price of crude oil was around $141 per barrel when the government increased the price of diesel and kerosene to Tk 55 per litre from Tk 40 and octane to Tk 90 from Tk 67 and petrol to Tk 87 from Tk 65 on July 1. The government also approved increase in transport fares with effect from the same day following the fuel oil price adjustment.
Tamim said they had decided to decrease fuel oil prices as they made commitment during price hike in June that prices would be decreased again if the prices of fuel oils come down in international market. ‘When we increased fuel oil prices in June, the price of crude oil was around $141 and refined oil was $180. Now the prices of crude oil have come down to $90 and refined oil at around $100,’ he said.
The chief adviser’s special assistant, however, said it had to be ensured that the people got the benefit from the decrease in fuel oil prices.