Oil prices wont be reduced, says Nasrul
The government will not reduce the price of fuel oil in the local market, state minister for power, energy and mineral resources, Nasrul Hamid, said yesterday.
Speaking to journalists at a contract-signing ceremony at the Secretariat, Hamid said the price of fuel in the international market is on the rise and that the World Bank (WB) has predicted that the trend will continue for the next one year.
In October last year, the WB raised its 2017 forecast for crude oil prices to USD 55 per barrel from USD 53 per barrel, as members of the Organization of the Petroleum Exporting Countries (OPEC) prepare to limit production after a long period of unrestrained output.
Oil prices have increased in recent weeks.
Brent crude futures, the international benchmark for oil prices were up 17 cents, to USD 55.64, a barrel yesterday, according to Reuters.
Speaking to journalists at the Secretariat, finance minister Abul Maal Abdul Muhit said he is not sure whether the government has decided to reduce the price of oil.
Commerce minister Tofael Ahmed, who was also by his side at that time, told The Independent that the government is yet to take any decision on oil price reduction. As far as I know, there has
been no decision on this issue. Nothing has been discussed on this in the last Cabinet meeting with the Prime Minister, he added.
On November 20 last year, Muhith had said that the governments decision to reduce the price of fuel oil would be taken in mid-December.
In December, Muhith announced that the government might reduce the price of fuel oil by a small margin in January. He, however, said that since the price of fuel oil increased in the international market in December, the rate of reduction will not be much.
In April last year, Bangladesh had reduced the prices of octane and petrol by Tk. 10 per litre and diesel and kerosene by Tk. 3, to pass on the benefits of low prices in the international market to consumers in the country.At that time, the government said the reduction was part of a government plan to cut fuel prices in phases.
