Nasrul hints at fuel price hike

Nasrul Hamid, state minister for Power, Energy and Mineral Resources, hinted at a fuel oil price hike in his remarks when he was addressing journalists at the Bidyut Bhaban in the capital on Tuesday.

“The price of fuel oil on the international market has risen abnormally, causing Bangladesh Petroleum
Corporation (BPC) to lose hundreds of crores of taka every day,” Nasrul Hamid said.

“As a result, the government is considering adjusting the price of oil on the domestic market. Nothing, however, has been determined as of yet,” the state minister added.

Meanwhile, industry insiders are concerned that the state minister’s remarks signal an impending increase in fuel oil prices, given the recent increase in natural gas prices and the buzz about an imminent rise in electricity prices.

Nasrul Hamid said that there was uncertainty about the duration of the volatility in the international market.

Every day, BPC suffered a loss of Tk 100 crore and so they had to take some responsibility, he told reporters. “That’s why we want to adjust the domestic price of fuel oil.”

He added that the neighbouring countries made price adjustments regularly.

According to the Energy Division, the per litre diesel price in Bangladesh is lower than in other Asian countries.

The price of diesel in Bangladesh is Tk 80, in India it is Tk 110, in Pakistan it is Tk 94, in Nepal it is Tk 113, and in Sri Lanka it is Tk 101 (calculated at Tk 92 against USD).