UNB, Dhaka :
Petroleum price will be rationalised within a few months as a move has been taken to fix it in line with the price
on the international market.
Finance Minister AMA Muhith on Friday dropped this indication while responding to a question on petroleum price at his post-budget press briefing. He was asked whether the government would reduce the petroleum price in the domestic market keeping in view with the lower price of the global market.
Muhith said the government has already started work in this regard. But due to budget process, proper attention could not be given to this. “Now, we’ll resume the process from the next month with cooperation of the Energy Division once the budget process is over,” he told reporters.
He hoped that the Prime Minister’s energy adviser will help them do this job. He is now preparing the papers.
“We want to bring the petroleum price to a logical level. The last decision was that we will maintain a certain difference level with the international market price in fixing the petroleum price,” he added.
Muhith said the current petroleum price is almost close to the price of the international market as per local tariff of the petroleum products.
But the government had been providing subsidies to this sector for last the 30-40 years and its financing process is not so transparent.
He said if the current price is taken into consideration, the amount of subsidies being provided to petroleum will not be changed so much.
“Now, we’re going to fix a tariff value of the petroleum products which will be close to the international price.”
Earlier, the government moved for rationalising the price with certain formula. One of the formulae in this regard was to set the price taking 80 percent of the value of petroleum of international market price.
But, he said the government could not be able to do so because of higher price of petroleum on the international market. “Since, the price has now come down on the international market, we’ll reform this price taking its advance.”
He also said the way subsidies are being provided to the petroleum sector was not a transparent one and it was a complicated issue.
He said there was a decision made by the government that a certain difference will be maintained with the international price in rationalising the petroleum price.
Petroleum price will be rationalised within a few months as a move has been taken to fix it in line with the price
on the international market.
Finance Minister AMA Muhith on Friday dropped this indication while responding to a question on petroleum price at his post-budget press briefing. He was asked whether the government would reduce the petroleum price in the domestic market keeping in view with the lower price of the global market.
Muhith said the government has already started work in this regard. But due to budget process, proper attention could not be given to this. “Now, we’ll resume the process from the next month with cooperation of the Energy Division once the budget process is over,” he told reporters.
He hoped that the Prime Minister’s energy adviser will help them do this job. He is now preparing the papers.
“We want to bring the petroleum price to a logical level. The last decision was that we will maintain a certain difference level with the international market price in fixing the petroleum price,” he added.
Muhith said the current petroleum price is almost close to the price of the international market as per local tariff of the petroleum products.
But the government had been providing subsidies to this sector for last the 30-40 years and its financing process is not so transparent.
He said if the current price is taken into consideration, the amount of subsidies being provided to petroleum will not be changed so much.
“Now, we’re going to fix a tariff value of the petroleum products which will be close to the international price.”
Earlier, the government moved for rationalising the price with certain formula. One of the formulae in this regard was to set the price taking 80 percent of the value of petroleum of international market price.
But, he said the government could not be able to do so because of higher price of petroleum on the international market. “Since, the price has now come down on the international market, we’ll reform this price taking its advance.”
He also said the way subsidies are being provided to the petroleum sector was not a transparent one and it was a complicated issue.
He said there was a decision made by the government that a certain difference will be maintained with the international price in rationalising the petroleum price.
