In the middle of the year, the system of fuel oil price adjustment with the world market may be launched in the country. A policy for setting oil prices every month has been sent to the Finance Ministry from Energy. Experts say that consumers will get benefits if market-based rates are introduced. However, the duty on such products should be reduced.
Fuel oil prices were revised three times from November 2021 to August next year. This increases the price of diesel kerosene by 44 taka per liter or up to 67 percent.
IMF recommends market-based fuel oil prices by the end of 2022. Since then, the government has been on the path of making policies.
Minister of State for Energy and Mineral Resources Nasrul Hamid said, “The price of fuel oil is determined daily in the neighboring country of India. A team of the ministry also visited India to get that experience. At the beginning of the month, the government can determine the price in the country’s market by adding oil prices in the world market, transport costs, commissions and customs-taxes.
Until 2020, fuel oil prices were low in the world market for 6-7 consecutive years. Bangladesh Petroleum Corporation-BPC made a huge profit without reducing the price.
The energy expert highlighted that experience. Ejaz Hossain said, ‘Like LPG, fuel oil prices should also be adjusted every month.’
Irrigation pumps in the country’s agriculture are still dependent on diesel. In this case, the experts advise to continue the subsidy in alternative ways until the use of solar energy is ensured.