Bangladesh News

With fuel prices continuing to fall sharply in the global market, the government is mulling over lowering the petroleum prices by 10 percent in domestic markets by the end of this month.

“The decrease may be roughly 10 percent, but it is to be decided at a meeting next week,” Chief Adviser’s Special Assistant for Power and Energy Professor M Tamim told The Daily Star yesterday evening.

With a cut in fuel prices, the fares of transports will also be reviewed after consultations with the ministries concerned and transport owners shortly, he said.

The price of diesel and kerosene now is around Tk 55 per litre, which will go below Tk 50 if its price is reduced by 10 percent.

The present price of octane is Tk 90 and of petrol Tk 87 per litre and these prices may come down by around Tk 9 when the price cut is implemented.

Asked why the government is taking time to revise the fuel price in domestic market when the prices has already started coming down in the international market, M Tamim said, “We are still observing. The prices are falling now, but it may also go up tomorrow. We cannot revise prices locally times and again.”

Oil prices slumped towards 77 dollars per barrel in the international market yesterday. The price of crude oil has now slumped by 47 percent since striking record high points above 147 dollars per barrel on July 11.

The government of Bangladesh increased fuel prices on July 1 this year when the price of crude oil was around 141 dollars and of refined oil 180 dollars per barrel in the international market.

Bangladesh Petroleum Corporation Chairman M Anwarul Karim said there is a decision in principle to cut fuel prices and still to give subsidy, but it will take at least 15 to 20 days to implement the reduced rate.

“This is because if I order for purchase of fuel from international market today, it takes no less than 20 to 25 days to get it here,” he told The Daily Star.

Meanwhile, Regulatory Reforms Commission Chairman Dr Akbar Ali Khan said it is not the responsibility of the government to revise the prices of fuel.

“As per the act, Energy Regulatory Commission is the authorized entity to fix prices of fuels. Let the Commission take the decision — either to cut prices or to increase it. As a result, the government can not be blamed,” he told The Daily Star.

Dr Ali, also former finance adviser to the previous caretaker government, said when Energy Regulatory Commission fixes the prices, people have chances to suggest or to ask reasons for price hike or cut, which is not possible in the case when the government takes decision.