The government in principle has decided to curtail the price of furnace oil, State Minister for Power, Energy and Mineral Resources Nasrul Hamid said on Monday.
Refusing to disclose any further detail about the price cut, Nasrul told the reporters at the secretariat that the “New announcement regarding the revised price will be made public within a week”.
The State Minister also said that the government is yet to decide on price cut for other fuels such as diesel, petrol and octane. “We are still discussing about it. May be an announcement will come after one month,” he said.
Nasrul said that the decision of price cut of furnace oil was made to aid the industrial sector. “Lots of factories and power plants use furnace oil. A price cut will be beneficial for them,” he said.
The BPC had adjusted oil prices upwards in 2013 when the rate of the commodity per barrel rose to $122 in the international market. It fixed per litre octane price at Tk99, petrol at Tk96 and diesel at Tk68 at the time.
The state-owned enterprise has been maintaining the same prices though the oil price dropped to less than $40 a barrel globally in last two years.
Lauding the government’s latest initiative, Prof Dr Badrul Imam, teacher of geology department at Dhaka University told energynewsbd.com that “The government has taken a good decision.”
“If the price of furnace oil is reduced, then the government does not need to increase the price of electricity as per the proposal of the electricity distribution companies,” he said.
It is to be noted that even though global oil price has been falling for around one and a half years, the government kept oil price unchanged to enable state-owned Bangladesh Petroleum Corporation to offset the losses it had sustained.
At present, the BPC imports about 1.2 million tonnes of crude oil and 4.2 million tonnes of refined oil from abroad while around 300,000 tonnes of petroleum products are received from different gas fields and private fractionation plants.
Crude oil is processed only in the Eastern Refinery to produce diesel, petrol, octane, furnace oil and LPG.