BERC raises furnace oil price by Tk18.85 to settle May rate at Tk113.54 per litre

The Bangladesh Energy Regulatory Commission (BERC) has increased the consumer-level price of furnace oil by Tk18.85 per litre, setting the new rate at Tk113.54 per litre.

The revised price will come into effect from tonight (18 May) and remain effective until further notice, according to a notification issued by the regulator.

The new rate will apply to furnace oil supplied by the Bangladesh Petroleum Corporation (BPC) to the Bangladesh Power Development Board (BPDB), public and private power plants, industrial units, and other consumers.

In the notification, the BERC said the latest adjustment was made under Sections 22(kha) and 34 of the Bangladesh Energy Regulatory Commission Act, 2003.

The regulator stated that the revised price was determined based on the average Platts rate of refined furnace oil published during May and the free-on-board (FOB) price of imported crude oil.

The BERC, in its notification, also said the upward price adjustment was made following provisions of its February directive that allows furnace oil prices to be revised every three months or whenever necessary in line with international market movements.

The latest hike comes just over a month after the commission sharply increased furnace oil prices in April by Tk24.59 per litre, raising the rate from Tk70.10 to Tk94.69 per litre.

At that time, the BERC cited soaring international oil prices amid tensions in the Middle East and supply disruptions in the global market.

Furnace oil is widely used in Bangladesh's power plants as well as in industrial boilers and captive power generation units.

Any increase in fuel prices is expected to raise power generation costs and put additional pressure on industrial production expenses too.