The new government has further reduced the prices of kerosene and diesel by Tk 2 per litre before the onset of Boro season as a part of its election pledge. The price of diesel and kerosene has been reduced to Tk 44 per litre from Tk 46. The price slump took effect from yesterday midnight.
The Bangladesh Energy Regulatory Commission (BERC) readjusted the prices of these two items following the proposal of the Energy Ministry after the cabinet meeting decision yesterday morning.
The Cabinet meeting chaired by Prime Minister Sheikh Hasian yesterday decided to reduce the prices of diesel and kerosene.
Prime Minister Sheikh Hasian, who has also in charge of the Energy Ministry, held a meeting with BERC team on reduction of diesel and kerosene prices.
The prices of kerosene and diesel have been reduced for the third time since October 26. The prices of Octane and petrol, however, remain unchanged. Octane is now selling at Tk 77 and petrol Tk 74.
Bangladesh Energy Regulatory Commission Chairman Golam Rahman yesterday confirmed the reduction in the prices of these two petroleum products.
He said that the BERC declared the readjusted the prices of these items for the first time.
“Now, the BERC is the authority to declare the readjustment of the prices of the petroleum products,” BERC Chairman said.
The BERC has approved the readjustment of the prices of kerosene and diesel following the consideration fuel prices of neighbouring countries to avoid the smuggling of the products, he further said.
The Energy Ministry has placed the proposal for reduction of these two products to Bangladesh Energy Regulatory Commission (BERC) following the cabinet decision yesterday through the Bangladesh Petroleum Corporation.
But the Ministry of Communication is take any decision yet to reduce the bus fare following the reduction of diesel price.
Earlier on July 1, the government raised the prices of these products by 36 percent. Later, the government reduced their prices from 10.34 per cent to 12.73 per cent on an average on October 26 close on the heels of their sharp decrease in the international market.
Bangladesh has an annual demand of nearly 4 million tonnes of petroleum products including 2.3 million tonnes of diesel in 2007-2008.
According to the agriculture ministry sources the farmers will use 119,87,26,578 litres of diesel during the irrigation of their Boro field.
BIDS economist Dr Zayed Bakht in an interview with the BCC said that reduction in the prices of kerosene and diesel and kerosene does not matter most but what matters most is the timely supply of these two items to the beneficiaries.
He laid stress on keeping strict vigil to check smuggling of these two items to neighbouring countries.
He also suggested the government to ensure