Fuel prices slashed by 10-13pc
27th October 2008
The government has slashed petroleum prices by 10 to 13 percent following the recent drastic price fall in the global market.
In an announcement yesterday, chief adviser's special assistant for energy M Tamim said prices of per litre diesel and kerosene will come down to Tk 48 from Tk 55, petrol to Tk 78 from Tk 87 and octane to Tk 80 from Tk 90.
The new fuel prices effective from Sunday midnight will also reduce diesel-run transport fares by Tk 0.05 to Tk 0.07 per kilometre, he added.
"The petroleum prices have been reduced following fall of prices in the global market; it will be readjusted in the same way in future," said Dr M Tamim at a press conference after announcing the new petroleum prices.
The government increased petroleum prices by 35 percent on average in July this year as the fuel price in the global market hit record high $179 per barrel. But from September, the international petroleum prices began to go down and reached $61 as of yesterday.
Examining the global market trend, the government decided to readjust the fuel prices.
According to the new announcement, diesel and kerosene prices have been cut by 12.73 percent, petrol by 10.34 percent, and octane price slashed by 11.11 percent per litre.
Dr Tamim said the government has decided to review petroleum prices every three months and will provide subsidy for diesel and kerosene as usual.
The prices of octane and petrol will be adjusted based on imported price of Bangladesh Petroleum Corporation (BPC), he added.
The government allocated Tk 4,000 crore in the budget 2008-09 For subsidising diesel and kerosene. Dr Tamim said Tk 1,400 crore has been spent so far for subsidising fuel in the first quarter of this fiscal year.
On transport fares, Tamim said Bangladesh Road and Transport Authority (BRTA) has already met the bus owners' association and the new bus fares will be announced today or tomorrow.
The present government has so far adjusted petroleum prices three times. Since independence fuel prices have been adjusted 30 times -- cut four times and upped 26 times.
In 1986, petrol price was reduced to Tk 12.14 from Tk 14.67, and diesel and kerosene to Tk 6.71 from Tk 7.22.
The price of petrol was reduced drastically to Tk 7.51 from Tk 12.88 in 1990. The price was readjusted to Tk 14 the same year. In 1992, price of petrol was again reduced to Tk 13.7.
Later in 1994, diesel and kerosene prices were reduced to Tk 12.7 from Tk 13.7.
Source:The Daily Star