BERC slashes furnace oil price by 18%, new rate effective from tonight
The decision to lower the price follows a contentious hearing on 29 January, where Bangladesh Power Development Board (BPDB) accused the BPC of overcharging
The Bangladesh Energy Regulatory Commission (BERC) has cut the price of furnace oil by 18%, bringing it down from Tk86 to Tk70.10 per litre for both public and private power producers and industries.
The new rate, fixed by BERC for the first time following a public hearing last month, is set to take effect from Sunday (22 February) midnight.
The Bangladesh Petroleum Corporation (BPC), which previously determined the price, supplies approximately 8-9 lakh tonnes of this key industrial fuel annually, primarily to public power generation companies, with a portion also going to private power producers and other industries.
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The decision to lower the price follows a contentious hearing on 29 January, where Bangladesh Power Development Board (BPDB) accused the BPC of overcharging.
The BPDB alleged that it had been charged up to Tk644 crore more than the actual cost of supply over the last year and a half.
According to BPDB officials, BPC maintained a fixed price of Tk86 per litre during this period, despite its own procurement costs fluctuating between Tk57 and Tk83 per litre in different months.
In light of this, BPDB had proposed a significantly lower price of Tk50.83 per litre.
In stark contrast, BPC had proposed a minimal reduction of just Tk1, suggesting a revised price of Tk85 per litre.
As part of its ruling, BERC has also specified the margins and transmission charges for the oil marketing companies.
Padma, Meghna, Jamuna, and Standard Asiatic Oil Company Limited will have a margin of Tk0.71 and transmission charges of Tk1.20 per litre.
The new, lower price is expected to provide some relief to power producers and industrial consumers who rely on furnace oil for their operations.
