March 1, 2024, 4:57 pm


Staff Correspondent

Published:
2023-10-19 16:39:52 BdST

Govt to introduce new formula to adjust fuel price “after election”


The government is planning to introduce a new formula for aligning fuel prices with the global market following the upcoming national election.

According to the new mechanism, fuel oil prices may undergo adjustments either on a monthly or quarterly basis, a high official from the Power, Energy and Mineral Resources Ministry, said seeking anonymity today.

“We are presently examining the plan. It has not been finalized yet,” the official claimed.

Earlier, State Minister for Power, Energy and Mineral Resources Nasrul Hamid said that the plan has already been finalized based on the indexing formula used by the global oil companies.

“We have sent the proposal to the finance ministry… We cannot speak on this matter at this time. An election is coming; maybe something will be done afterwards,” the minister told the reporters following an event on Tuesday.

The prices of petrol, octane, and diesel kerosene were hiked by over 50 per cent last year in coordination with the international market as the government attempted to cut losses. 

Though the price in global markets fell later on, the fuel prices were not adjusted downwards. For a few years before this, fuel was sold in Bangladesh at prices higher than in the international market.

The government claims it has been selling fuel at a low price for an extended period, even when prices on the international market are high.

As a result, the price was kept high to overcome the losses incurred during that period.

The government claims it has been selling fuel at a low price for an extended period, even when prices on the international market are high.

As a result, the price was kept high to overcome the losses incurred during that period.

However, the Ministry of Power recently announced that the price of fuel oil will be adjusted every month in line with the international market.

Despite concerns about energy security amid the start of the Israel-Palestine conflict, there is no alternative initiative on the matter, State Minister Hamid said.

A large part of oil and gas shipments to Bangladesh come from the Middle East, but we are still determining if the fuel situation will worsen because of the conflict, he said.

“There is no alternative. The source of oil and fuel is one part of the world. Everyone is concerned. All countries will be affected,” the minister said.

The state minister also added that the Rooppur Nuclear Power Plant will be added to the national grid by September of next year, adding that the transmission lines are still being prepared.

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