Govt to cut diesel price

The government is likely to bring down the diesel price following the cut in import duty on the key fuel by the National Board of Revenue, said an energy ministry official yesterday.

"The ministry officials will sit and announce a new price [of diesel] as soon as possible," said Mir Mohammad Aslam Uddin, deputy principal information officer of the power, energy and mineral resources ministry.

Yesterday, in a gazette notification, the NBR reduced the import tariff to 22.75 percent from 34 percent.

The NBR move comes amid demands from various quarters to slash import duty after the government hiked petroleum prices by up to 52 percent early this month to reduce pressure of subsidy on the state coffers.

Energy ministry sources yesterday said the prices of octane and petrol may also be reduced by a small margin as Bangladesh Petroleum Corporation (BPC) has been making profits since the price hike.

According to the BPC, diesel is the most consumed fuel in the country. It accounts for 72 percent of the annual consumption of 65 lakh tonnes of petroleum. Transport and irrigation are two major areas of diesel use.

Khondaker Golam Moazzem, research director at the Centre for Policy Dialogue, said the government should cut prices of diesel following the duty reduction.

"The government should have announced the price cut of diesel and reduction in import tariff simultaneously," he said.