The government is planning to reduce prices of octane, petrol, diesel and kerosene in three phases.
State Minister for Power, Energy and Mineral Resources Nasrul Hamid made the disclosure while talking to journalists at his secretariat office on Monday.
He told the reporters that the prices of octane, petrol, diesel and kerosene may be reduced by Tk 15 to Tk 20 per litre in three phases.
Later at the evening he told energynewsbd.com over the phone that the price reduction per liter will be between Tk 6-Tk 10 at the first phase.
“Announcement regarding the first phase reduction might come within a week”, he said.
Nasrul said that after the price cut of furnace oil in last week, the government decided to adjust the price of octane, petrol, diesel and Kerosene.
“This will be done in three phases to gauge the impact of price reduction and to determine whether it works for the public interest or not,” he said.
After the price cut in first phase, we will sit with transport owners and other stakeholders concerned to figure out the impact, Nasrul added.
It is to be noted that on March 31, this year the government has reduced the price of furnace oil to Tk 42 from Tk 60 per litre effective from April 1.
Meanwhile, a source with the Bangladesh Petroleum Corporation (BPC) told energynewsbd.com that BPC’s calculation and observation regarding the price cut of oil has already been sent to the Ministry of Power, Energy and Mineral Resources.
The price cut will be between Tk 15-Tk 20 per liter, the BPC source said.
Talking with energynewsbd.com, Prof Dr M Tamim, Professor of Petroleum and Mineral Engineering Department of BUET lauded government’s decision of reducing oil prices in multiple phases.
“Through that the impact of price cut for public interest could be measures,” he said.
The country’s state-run Bangladesh Petroleum Corporation (BPC) imports the oil from 13 international companies.
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.
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, diesel at Tk68 and furnace oil Tk 60 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.
The BPC is now making around Tk 8,000-9,000 crore profit per year by procuring oil at low prices and selling those at higher rates in the domestic market.