The prices of fuel oil in many Asian countries including Hong Kong, Singapore, Indonesia and India are still higher even though Bangladesh raised the prices remarkably on Friday to ease pressure on the economy.
Yet, state-run Bangladesh Petroleum Corporation (BPC) is counting a loss of Tk8.13 per litre of diesel.
The government says the prices had to be adjusted in line with the global market amid a crisis, driven by the ramifications of the Ukraine war that broke in February.
Since then, the BPC has incurred a mammoth loss of Tk8014.51 crore in fuel oil sales over the last six months, according to government sources.
Recently, the government took different moves to ease pressure on foreign reserves, asking people to maintain austerity.
As per the new prices, within a 40-km radius of the depot, the cost of diesel, kerosene, octane and petrol is now Tk114, Tk114, Tk135 and Tk130 per litre. Experts and consumers say the decision will raise the prices of essentials and transport fares significantly.
India adjusted the fuel prices on May 22, hiking diesel price to Tk114 and petrol to Tk130. But Bangladesh was selling diesel at Tk80 and petrol at Tk86 which was Tk34 and Tk44 lower than in India.
The last time Bangladesh adjusted the fuel prices was on November 3 last year when it increased the prices of diesel and kerosene.
Compared to India, Nepal and Sri Lanka, petrol is still cheaper in Bangladesh.
According to the BPC, there was a scope for smuggling of fuel to neighbouring India due to comparatively lower prices.
The Border Guard Bangladesh, however, states that smuggling of fuel through the border is now hardly possible due to strict monitoring. As per a BGB report, 711 litres of fuel oil were seized from January to August 6 this year.