Bangladesh govt raises fuel prices by 35%

Dhaka, June 30 (UNI) In the wake of rising fuel prices in international market, Bangladesh caretaker government today raised prices of all types of petroleum fuels by about 35 per cent with immediate effect.

The price of one litre of octane was fixed at 90 taka from the earlier price of 67 taka, while the price of petrol was fixed at 87 taka instead of 65 taka, an Energy Ministry release said.

Diesel and kerosene prices were raised to 55 taka from 40 taka respectively and price of furnace oil was increased to 30 taka from 20 taka a litre.

The price of LPG per bottle was raised to 1,000 taka from 600 taka.

The price of compressed natural gas (CNG) was raised in May 2008.

About the latest rise in the petroleum, Chief Advisor's special Assistant for Power and Energy Ministry M Tamim said the government had no alternative but to raise the prices to reduce the revenue losses.

The prices of petroleum products were last raised in April 2007 when the price crude per barrel was 60 dollars in the international market. Now, that price has gone up to 142 dollars, the release said.

Currently, the Bangladesh Petroleum Corporation (BPC) is importing a barrel of crude at 186 dollars. As a result, the prices of a litre of octane, petrol, diesel and kerosene are between 90-95 taka as per import price of BPC with subsidies of 22-55 taka per litre.

''If the prices remain stable in FY08-09, the government's total subsidy will stand at 17,000 crore taka, the release said.

It also said different countries in the region including India, Sri Lanka, Nepal and Malaysia have also raised fuel prices.

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