Bangladesh Petroleum Corporation (BPC), a state-owned organisation, moves quickly to reduce fuel prices following a decision of the new cabinet.
The Awami League-led grand alliance government in its maiden cabinet meeting on Wednesday decided to reduce fuel prices, particularly diesel.
The cabinet decision came, as it was an election pledge of the grand alliance to reduce the prices of agri-inputs through providing subsidy.
Conveying the cabinet decision, AL spokesman and LGRD Minister Syed Ashraful Islam said the decision was made as part of efforts to fulfil their election pledges.
According to sources, the Energy Division asked the BPC to look into the recent trends on the international market and calculate how much the prices could be reduced.
The petroleum price on the global market has come down below $ 40 per barrel after hitting a record level of $ 150 last year.
BPC Chairman Anwarul Karim said his organisation, after being instructed by the energy secretary, has started calculating fuel prices.
“We're calculating how much the prices could be readjusted in view of the downtrend on the international market. We're hopeful of submitting our proposal to the Energy Division by Sunday,” he said.
The immediate-past caretaker government had raised the fuel prices by 36 percent following the sharp rise on the international market.
When the prices declined, the caretaker government reduced the prices twice -- by 12 percent in September and then by 4.3 percent in December last year. However, the local fuel prices are still higher compared to the international ones.
After the latest price adjustment, diesel and kerosene prices came down to Tk 46, octane to Tk 77 and petrol to Tk 74 per litre on the local market.
The BPC sources said it may suggest the government to reduce fuel prices to avoid any contamination or distortion on the local market. In that case, the price of each item may be reduced by Tk 5 to 7 per litre, they hinted.
However, before any readjustment of fuel prices, the government is supposed to consult the Bangladesh Energy Regulatory Commission (BERC) for its approval.