Power production cost to rise as furnace oil price hiked again

The government on Monday hiked furnace oil price by Tk18.85 to Tk113.54 per litre, significantly raising power production cost in the country.

The hike, the second in just over a month, will come into effect from midnight, said a notification issued by the Bangladesh Energy Regulatory Commission (BERC).

The hikes are spurred by supply disruptions brewing in the Strait of Hormuz amid the Iran war-related tensions.

Furnace oil is used in a number state-run power production plants, private production plants and industrial units in the country. Hikes will raise production costs, which the retail consumers would ultimately have to bear unless the government provides policy support like subsidies.

On 12 April, the BERC hiked furnace oil price by Tk24.59 to Tk94.69 per litre. The regulatory body started adjusting the price with global rates in February, after the interim government shifted the responsibility of setting prices from Bangladesh Petroleum Corporation (BPC).