Business Desk :
The Bangladesh Petroleum Corporation (BPC) has decided to reduce the prices for jet fuel and furnace oil by Tk 2 per litre as international crude oil prices fall.
“We have decided to reduce the jet fuel and furnace oil prices by Tk 2 per litre,” ABM Azad, chairman of the BPC confirmed it.
Currently, the price of a litre of jet fuel (Jet A-1) stands at Tk77 and $0.73 for international flights while the price of furnace oil is Tk 62 per litre.
The annual demand for jet fuel is 3.45 lakh litres and furnace oil is 3.64 lakh litres.
The government raised the prices of diesel and kerosene to Tk 80 per litre from Tk 65 with effect from November 4.
The BPC raised both the furnace-oil price on the local market by 16.98 per cent to Tk 62 per litre and jet fuel for domestic flights by 7.79 per cent to Tk 77 per litre which was effective from November 5.
Bangladesh annually imports around 3.50 million tonnes of furnace oil containing 3.5 per cent sulfur. Of this volume, 3.20 million tonnes are imported by the private sector to run their power plants, and the remaining 300,000 tonnes by the BPC.
Earlier on July 4, 2020, the BPC had raised the retail furnace-oil price by 26.19 per cent to Tk 53 per litre.
Currently, the country currently has furnace oil-fired power plants of around 5,700 megawatts (MW) of capacity. Around 4,500 mw-capacity plants are owned by the private sector and the 1,200mw plants state-owned among 5,700MW.
Jet fuel is considered as one of the most important transportation fuel mainly used in the aviation sector. On the other hand, furnace oil is used for power generation and industrial plants.
