Staff Reporter :
In coordination with the international market, the government has decided to reduce the fuel prices in the domestic market by Tk 5 per litre.
The new prices of diesel, octane, petrol and kerosene have been made effective from Monday night.
According to the new prices, diesel has been reduced from Tk 114 to Tk 109, octane from Tk 135 to Tk 130, petrol from Tk 130 to Tk 125 and kerosene from Tk 114 to Tk 109 at the consumer level.
“The prices of diesel, petrol, octane, and kerosene have been cut by Tk 5 per litre”, Nasrul Hamid, State Minster for Power, Energy, and Mineral Resources confirmed this to media yesterday.
However, the Ministry of Power, Energy, and Mineral Resources has issued a circular in this regard last night.
Earlier on August 5, the government increased the diesel price by Tk 34 to Tk 114 per litre, octane by Tk 46 to Tk 135 and petrol by Tk 44 to Tk 130 per litre. The price of kerosene was also increased by 42.5 per cent to Tk 114.
Earlier on the day, State Minister for Power, Energy and Mineral Resources Nasrul Hamid hinted to journalists that prices of fuels will be adjusted further.
However, the NBR on Sunday said, the government slashed import duties on diesel and rice – by over 10 per cent in a move to tame soaring commodity prices that have hit the country’s people hard, even more so those in the limited-income group. With the reduction, the duty on diesel imports comes down to 22.75 per cent and that of rice to 15.25 per cent.
“We are given some concessions in respect of taxes on import of fuel. We may be able to adjust the price of oil because of the reduction duty on import. A calculation is now being examined in this regard. We hope that there may be a change in fuel prices since the government has given duty exemption. That may be a bit for us…but the oil market is up again in the international market,” Nasrul Hamid said.
Earlier in the day, after a meeting with petrol pump owners, Bangladesh Petroleum Corporation (BPC) Chairman ABM Azad said that it may take two to three days to know the impact on the price structure due to the reduction in import duty on fuel. He also said, “The diesel still costs $132 per barrel in the international market. As a result, BPC is losing Tk 9.5 to Tk 10 per litre.”
“However, it depends on the Ministry of Power, Energy and Mineral Resources when the benefits will reach the consumer level,” the BPC Chairman added.
Fuel price hike has been one of the most discussed issues in the country that have further fueled the already high inflation, causing people to fall into grave distress.
With the slash in import tax on diesel, which accounts for about 73 per cent of the total fuel consumption in the country, by about one-third, the government aims to give some relief to the people.
The tax cut has created an opportunity to reduce costs of transportation, irrigation, and other services that rely on diesel.
As a record hike in fuel prices on August 5 by the government triggered severe criticism from people across the board, the high-up in the government promised to reduce the fuel prices.
Apart from sedans or SUVs, public transports, and all types of freight transports are operated using diesel. Following the recent hike in diesel price, fares of those transports have already gone up, and subsequently prices of almost all commodities have surged.
The government increased the diesel price by Tk 34 to Tk 114 per litre, octane by Tk 46 to Tk 135 and petrol by Tk 44 to Tk 130 per litre. The price of kerosene was also increased by 42.5 per cent to Tk 114.
At present, around 34 per cent tax is levied on the imports of liquid fuel. Apart from this, an additional 15 per cent VAT is imposed at the distribution level and another 2.5 per cent VAT is levied at the business level.
If the fuel price is adjusted further-sufferings of the people may reduce to some extent as well as prices of daily commodities, experts observed.
