Fuel prices cut by Tk5 per litre

The government on Monday slashed the fuel prices by Tk5 per litre after the revenue board had cut a partial advance tax and import duty on diesel on Sunday.

With the fresh adjustment, the price of per litre diesel and kerosene will stand at Tk109 while petrol at Tk125 and octane at Tk130.

State Minister for Energy, Power and Mineral Resources Nasrul Hamid told journalist on Monday at secretariat that the government would reduce the diesel price.

Earlier, BPC Chairman ABM Azad echoed almost the same as Nasrul Hamid.

Last Sunday, the import duty on diesel was reduced from 10 percent to 5 percent and 5 percent advance tax was withdrawn by the National Board of Revenue (NBR) based on a request by the Ministry of Power, Energy and Mineral Resources.

The NBR decision came into effect on Sunday.

BPC said the total taxation on diesel was 34 per cent. After cutting tax and import duty, it is now about 25 percent.

A BPC official said customs had imposed all taxes including import duty, VAT, advance tax at 40 cents on per liter diesel.

ABM Azad said in the last 28 days BPC had spent an average $132 for per barrel refined oil. The loss is still Tk9 to Tk10 per liter. So there will not be much impact after the tax cut, the BPC Chairman added.

On the other hand, State Minister Nasrul Hamid said there were some benefits due to the tax cut. Fuel prices are also being considered to be adjusted.

The price of oil in the world market has increased again, he said.

On 5 August, the government increased fuel oil prices by 42 to 52 per cent, impacting the every level of the country’s economy badly.