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Only Pakistan and Sri Lanka sold diesel at prices lower than that of Bangladesh as of Tuesday, but diesel is more expensive in India, Bhutan, Maldives, and Nepal
Despite the recent hike in the price of diesel in Bangladesh, the country still offers the fuel at a cost lower than that of most of its South Asian neighbours.
Only Pakistan and Sri Lanka sold diesel at prices lower than that of Bangladesh as of Tuesday. But diesel is more expensive in India, Bhutan, Maldives, and Nepal.
The Bangladesh Petroleum Corporation (BPC) last Wednesday raised the prices of diesel and kerosene at the retail level by Tk15 per litre in order to keep them in line with the global market.
The new price of diesel and kerosene in the country is Tk80 per litre — up from Tk65 earlier.
In Mumbai, India, diesel cost about Tk108.98 per litre as of Tuesday, while in Bhutan, diesel sold for Tk96.07 per litre.
In Nepal, per litre diesel cost Tk3 higher than that in Bangladesh at about Tk82.86.
Sri Lanka and Pakistan, however, have so far been able to keep prices lower than that in Bangladesh.
In Sri Lanka per litre of diesel sold for about Tk47.25 and in Pakistan, it cost Tk71.90.
The average price of diesel around the world is $1.13 per litre, or about Tk97.
Fuel oil prices differ from one country to another as richer countries usually have higher priced fuel while poorer and producer countries have significantly lower prices.
Countries like Bangladesh subsidize fuel prices to help consumers cope with the higher oil prices in the global market.
“In determining the price of diesel and kerosene, many issues have been given priority, including the prices of the fuels in neighbouring countries, as well as internal subsidy prices,” said the Director (Finance and Marketing) of BPC Kazi Mohammad Mozammel Hoque.
There were many reasons behind the raising the prices, including prices in the international market, he added.
“But the most important reason was the subsidized prices,” he further said.
“A letter has already been issued by the BPC to curb oil smuggling in the border districts,” he Hoque said.
According to BPC sources, as the price of fuel oil has been rising in the international market since the beginning of the current fiscal year, the corporation has been facing losses in the case of diesel — the most-used fuel oil.
In the past five and a half months, BPC lost about Tk1,147.60 crore by selling diesel at the previously subsidized price.
Information Minister Hasan Mahmud on Friday said the government has been consistently subsidizing fuel oil, but miscreants have started smuggling out the products due to low prices in the country.
Prices have been adjusted to prevent this smuggling, he added.
The Energy and Mineral Resources Division said that due to the rising price of fuel oil in the international market, like neighbouring countries and other countries of the world, Bangladesh has also decided to adjust the price of fuel oil.
“As a welfare state, Bangladesh has always been committed to provide fuel at the consumer level at affordable prices keeping in view the purchasing power of the people,” it explained.
The government had fixed the price of diesel in January 2013 at Tk78 per litre. Later, in April 2016, the price of diesel was reduced by Tk3 per litre, it further said.
(DT)
