Furnace oil price cut by Tk8.71 per litre to Tk100.39

The Bangladesh Energy Regulatory Commission (BERC) has reduced the retail price of furnace oil by Tk8.71 per litre, bringing the price down to Tk100.39 amid easing international fuel prices.

According to a notification issued by BERC today (30 July), the price of furnace oil has been reduced from Tk109.10 to Tk100.39 per litre. The new rate will come into effect from 12:00am on 31 July.

This is the second consecutive monthly reduction in furnace oil prices. In the previous adjustment, BERC lowered the price from Tk113.54 to Tk109.10 per litre.

BERC said the latest adjustment was approved at a special commission meeting held on 30 July after reviewing furnace oil import prices between 30 June and 28 July, along with Platts benchmark rates, marine freight charges and the exchange rate of the Bangladesh taka against the US dollar.

The regulator said the revised price was determined under the approved petroleum product pricing methodology, which factors in changes in global market conditions and currency fluctuations.

Earlier, furnace oil prices were set by the Bangladesh Petroleum Corporation (BPC) through executive orders. 

After the interim government transferred pricing authority to BERC, the regulator announced furnace oil prices for the first time in February this year. 

The latest revision marks the fifth price adjustment by the commission.

The last furnace oil price fixed through an executive order was announced on 2 August 2024.

The Bangladesh Power Development Board (BPDB), the country's largest electricity purchaser, is the main consumer of furnace oil supplied by the four state-owned oil marketing companies under BPC – Padma Oil Company Ltd, Meghna Petroleum Ltd, Jamuna Oil Company Ltd and Standard Asiatic Oil Company Ltd.