Sunday, 5 December, 2021

Govt justifies fuel price hike

  • Staff Correspondent
  • 6 November, 2021 12:00 AM
  • Print news

The government will re-adjust the prices of diesel and kerosene if fuel prices fall in the international market, the Department of Energy and Mineral Resources has said on Friday.

The state agency issued the explanation amid the outcry created by the abrupt hike in diesel and kerosene prices.

The government had fixed the price of diesel at Tk 68 per litre in January 2013. Later, in April 2016, the price of diesel was reduced by Tk 3 per litre to Tk 65, reads a statement issued by the Department of Energy and Mineral Resources.

Diesel and kerosene prices remained unchanged in the country for the last five and a half years, the statement adds. BPC is facing losses as fuel price has been rising in the international market since the beginning of the current financial year, it says.

Due to subsidized sales, BPC faced losses of Tk 2.97 from diesel sales (per litre) in June, Tk 3.70 in July, Tk 1.58 in August, Tk 5.62 in September and Tk 13.01 in October this year. It means BPC’s total loss from diesel sales amounted to Tk 1,147.60 crore in five and a half months, the statement said.

Mentioning about BPC’s various development projects involving around Tk 33,734.78 crore, the Department of Energy and Mineral Resources said that if BPC continues to face losses in such a situation, the implementation of these development projects will be hampered which may pose a threat to the country’s energy security.

Considering the overall circumstances, the decision of re-fixing the prices of diesel and kerosene has been taken on November 4 to secure a greater national interest, it says.

The explanation also adds that the price of diesel in Bangladesh is still lower than in the neighbouring countries.

Due to the rising price of fuel oil in the global market, other countries are regularly adjusting the price of fuel oil, says the statement.

The Department of Energy and Mineral Resources has mentioned that Bangladesh has always been committed to supplying fuel to the consumer level at affordable prices considering the purchasing capacity of the people.