Diesel price hiked Tk34 per litre, Octane by Tk46

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Dhaka, Aug 05: Bangladesh Petroleum Corporation (BPC) has increased the price of diesel by Tk34 per litre.

With the new rate effective from midnight, one liter diesel will cost Tk114, according to a release issued by the Ministry of Power, Energy and Mineral Resources on Friday night (5 August)

Prices of other fuel have increased as well. The price of Octane has been rised by Tk46 to Tk135.

Earlier, State Minister for power, energy and mineral resources Nasrul Hamid said people in Bangladesh are likely to pay more for fuel oil, gas and power as the country needs to readjust the prices to a global hike.

The time has come to readjust the prices to a “reasonable” level, the state minister for power and energy told reporters in Dhaka on Friday.

With its foreign currency reserves dwindling, Bangladesh has stopped buying liquified natural gas or LNG from the spot market due to a price hike.

The decision affected electricity generation as more than 50 percent of the country’s power plants are fuelled by gas. The government also suspended production at power plants run by costly diesel.

Due to the supply crunch, authorities have resorted to recurring power outages. Ministers and advisers have called for patience to tackle the economic crisis triggered by the Russia-Ukraine war. Businesses have also complained about disruptions to production due to power cuts.

In this situation, officials have been hinting at raising the prices over the past few days. At a seminar organised by the Federation of Bangladesh Chambers of Commerce and Industry on Thursday, some businessmen suggested raising prices of fuel oil and power to ensure uninterrupted supply.

“We are waiting for the adjustment to power tariffs. We want another adjustment to gas. And we will have to go for an adjustment to oil prices too,” Nasrul said on Friday.