Due to the increase in the price of fuel oil in the world market, the government has also increased the price of fuel oil in the domestic market. The price of diesel, kerosene, petrol and octane has been increased by two rupees per liter for the month of December.

The Department of Energy and Mineral Resources issued a notification in this regard on Sunday (November 30) night. The new rates will be effective from Monday (December 1).

According to the new rates, the price of diesel has been increased by Rs 2 per liter, kerosene by Rs 2 per litre to Rs 116, petrol by Rs 2 per litre and octane by Rs 2 per litre to Rs 124.

It is learned that the government has started the automatic pricing of fuel oil in line with the global market since March last year. As such, new prices are being announced every month. At present, the Bangladesh Energy Regulatory Commission (BERC) fixes the price of liquefied petroleum gas (LPG) every month in line with the international market.

According to Bangladesh Petroleum Corporation (BPC) sources, the demand for fuel oil is about 75 lakh tonnes annually. Diesel accounts for about 75 percent of the total demand. The remaining 25 per cent of the demand is met by petrol, octane, kerosene, jet fuel, furnace oil and various other fuel oils. Diesel is commonly used in agricultural irrigation, transportation and generators.

BPC always makes a profit in the sale of octane and gasoline. The company’s profit and loss depend on the sale of diesel. Earlier, the BPC used to adjust the prices of jet fuel used in aircraft and furnace oil used in power plants. Now the BERC is doing it every month. The Department of Energy and Mineral Resources determines the prices of diesel, kerosene, petrol and octane.

According to the Department of Energy, the price of fuel is fixed every month in the developed world, apart from the neighboring country India.

The International Monetary Fund (IMF) announced the automatic pricing of fuel oil on February 29 last year as a condition of the loan. With the introduction of an automatic fuel pricing system, the price of fuel in the international market will come down in the country and if increased, the domestic market will also increase.