Bangladesh slashes petrol price by 12 per cent

Dhaka, Oct 26 (UNI) Bangladesh military-backed caretaker government has cut the price of petroleum fuel on an average by 12 per cent that comes into effect from midnight in the wake of fall in fuel prices in the international market.

As per the new price, the diesel and kerosene would be sold at Tk 48 per litre in the domestic market instead of earlier price of Tk 55. The drop in price of diesel and kerosene is 12.73 per cent.

Similarly, the price of octane has been reduced to Tk 80 from the earlier rate of Tk 90 and the price of petrol reduced to Tk 78 from earlier rate of Tk 87 per litre.

This is for first time a government in Bangladesh made a downward adjustment in the price of petroleum within four months of hike.

Earlier, the caretaker government had raised the price of petroleum fuel by 35 per cent in July 2008 when the price of refined fuel went to USD 179.44 per barrel. The price of crude oil went to USD 147 per barrel.

Now, the prices of both the refined and crude oil have witnessed a significant fall in the international market.

The price of refined oil came down to below USD 80 while the price of crude oil declined to below USD 67 per barrel.

Announcing the price reduction at a press briefing, Chief Advisor's Special Assistant for Power and Energy Ministry Dr M Tamim said the government reduced the price in view of the declining trend in the international market.

He, however, said despite the fall in price, the government still has to provide subsidy in the diesel and kerosene.

But there is no subsidy in the price of octane and petrol. Rather their price has overstated by Tk 10-12 than that of in the international market, he added.

Dr Tamim said government would further consider price reduction if the price in the international market continued to fall. But it was very difficult to make a forecast.

''We'll review the price in every three months and take the decision on adjustment,'' he said giving a figure that the latest adjustment was made on the basis of Bangladesh Petroleum Corporation's (BPC) import price that was quoted on October 10.

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