Govt plans oil price cut

�Octane, petrol, diesel, kerosene prices could be cut by Tk 15-20 per litre in 3 phases�

The government is planning to reduce prices of octane, petrol, diesel and kerosene in two or three phases. State minister for power, energy and mineral resources, Nasrul Hamid, made this disclosure while talking to journalists at his Secretariat office on Monday. He told reporters that prices of octane, petrol, diesel and kerosene could be reduced by Tk. 15 to Tk. 20 per litre in three phases. Later, Hamid told The Independent that the price reduction per litre would be between Tk. 6 and Tk. 10 in the first phase. “The announcement regarding the first phase reduction may come within a week,” he added.
Hamid said after the cut in the price of furnace oil last week, the government decided to adjust the price of octane, petrol, diesel and kerosene. On March 31, the government reduced the price of furnace oil to Tk. 42 from Tk. 60 per litre, effective from April 1.
“This price reduction will be carried out in three phases to gauge the impact of price reduction and to determine whether it works in the public interest or not,” he said. “After the price cut in the first phase, we will sit down with transport owners and other stakeholders to figure out the impact,” Hamid added. Meanwhile, a source with the Bangladesh Petroleum Corporation (BPC) told The Independent that the BPC’s calculations and observations regarding the price cut of oil has already been sent to the power, energy and mineral resources ministry. The price cut will be between Tk. 15 and Tk. 20 per litre, the BPC source said. Prof. Dr M Tamim, professor of the petroleum and mineral engineering department of Bangladesh University of Engineering and Technology (BUET), lauded the government’s decision to reduce oil prices in phases.
The state-run BPC imports oil from 13 international companies. At present, the BPC imports some 1.2 million tonnes of crude oil and 4.2 million tonnes of refined oil from abroad, while around 300,000 tonnes of petroleum products are received from different gas fields and private fractionation plants.
Crude oil is processed only at the Eastern Refinery to produce diesel, petrol, octane, furnace oil and LPG. The BPC adjusted oil prices upwards in 2013, when the rate of the commodity rose to USD 122 per barrel in the international market. It fixed the octane price at Tk. 99 per litre, petrol at Tk. 96 per litre, diesel at Tk. 68 per litre and furnace oil at Tk. 60 per litre at that time.
The state-owned enterprise has been maintaining the same prices, even though the oil price dropped to less than USD 40 a barrel globally in the past two years. The BPC is now making profits of around Tk. 8,000 to Tk. 9,000 crore per year by procuring oil at low prices and selling it at higher rates in the domestic market.

Govt plans oil price cut

�Octane, petrol, diesel, kerosene prices could be cut by Tk 15-20 per litre in 3 phases�

The government is planning to reduce prices of octane, petrol, diesel and kerosene in two or three phases. State minister for power, energy and mineral resources, Nasrul Hamid, made this disclosure while talking to journalists at his Secretariat office on Monday. He told reporters that prices of octane, petrol, diesel and kerosene could be reduced by Tk. 15 to Tk. 20 per litre in three phases. Later, Hamid told The Independent that the price reduction per litre would be between Tk. 6 and Tk. 10 in the first phase. The announcement regarding the first phase reduction may come within a week, he added. Hamid said after the cut in the price of furnace oil last week, the government decided to adjust the price of octane, petrol, diesel and kerosene. On March 31, the government reduced the price of furnace oil to Tk. 42 from Tk. 60 per litre, effective from April 1. This price reduction will be carried out in three phases to gauge the impact of price reduction and to determine whether it works in the public interest or not, he said. After the price cut in the first phase, we will sit down with transport owners and other stakeholders to figure out the impact, Hamid added. Meanwhile, a source with the Bangladesh Petroleum Corporation (BPC) told The Independent that the BPCs calculations and observations regarding the price cut of oil has already been sent to the power, energy and mineral resources ministry. The price cut will be between Tk. 15 and Tk. 20 per litre, the BPC source said. Prof. Dr M Tamim, professor of the petroleum and mineral engineering department of Bangladesh University of Engineering and Technology (BUET), lauded the governments decision to reduce oil prices in phases. The state-run BPC imports oil from 13 international companies. At present, the BPC imports some 1.2 million tonnes of crude oil and 4.2 million tonnes of refined oil from abroad, while around 300,000 tonnes of petroleum products are received from different gas fields and private fractionation plants. Crude oil is processed only at the Eastern Refinery to produce diesel, petrol, octane, furnace oil and LPG. The BPC adjusted oil prices upwards in 2013, when the rate of the commodity rose to USD 122 per barrel in the international market. It fixed the octane price at Tk. 99 per litre, petrol at Tk. 96 per litre, diesel at Tk. 68 per litre and furnace oil at Tk. 60 per litre at that time. The state-owned enterprise has been maintaining the same prices, even though the oil price dropped to less than USD 40 a barrel globally in the past two years. The BPC is now making profits of around Tk. 8,000 to Tk. 9,000 crore per year by procuring oil at low prices and selling it at higher rates in the domestic market.