Syful Islam
Despite price fall of diesel both in the local and international market, price of furnace oil is yet to come down which has created mayhem among the industrialists whose industries run on this by-product of crude oil in absence of gas.
Furnace oil is a basic requirement for boilers and heating in the industrial units. Industries, which have gas facility, use gas instead of furnace oil as gas is cheaper. But for industries which does not have gas facilities use furnace oil. Furnace oil is a by-product of crude oil and produced in the refineries.
The Government raised price of furnace oil from Tk 20 to Tk 30 in 2008 in the pretext of price hike of other oil price in the international market. In the past the price of furnace oil was increased to stop black marketing of this item to the neighbouring country.
Many basic industries like jute mills, carpet mills, aluminium and ceramic factories require furnace oil for production purpose.
President of Bangladesh Chamber of Industries Shahedul Islam (Helal), an user of furnace oil said furnace oil price was increased by 400 per cent since 2004 while diesel price was increased by around 150 per cent during the same period.
He said the erratic price changes of furnace oil in the last 5 years forced closure of more than 50 industries in the Northern part of the country where gas facilities are not available.
Helal said scores of industries around the country are now under threat of closure due to the sharp high price of furnace oil.
“We are very concerned about the insensitive decision of the government because the prices of all fuel was decreased once in October 2008 and again in December but the furnace oil price still kept unchanged,” said the BCI president. He said diesel price, which is also required for industrial use, was reduced from Tk 55 to Tk 48 and later to Tk 46 during the last 4 months but furnace oil prices was kept unchanged at its highest level of Tk 30 per litre.
Helal said as furnace oil is a by-product of refinery; the government can always keep its price at the lowest level to help boost industries.
“Unless the price of furnace oil is reduced to around Tk 10 per litre immediately, many industries will be forced to close down their operation,” he observed.
Helal expected that the government will be more friendly to industrialisation and help industries to grow, if needed, through providing subsidy to the furnace oil price.
He informed that in 2004 when the oil price was at US$42 per barrel, price of furnace oil was at Tk 8 per litre. Presently the oil price have come down to around US$ 40 per barrel and the industrialists are expecting to come down the furnace oil price in the local market at Tk 8 per litre.
Courtesy: nation.ittefaq.com
