In a much anticipated move, the government has finally lowered the prices of petrol, octane, diesel and kerosene in Bangladesh.
The prices of octane and petrol were reduced by Tk10 a litre, while diesel and kerosene by Tk3.
Senior information officer at the Power, Energy and Mineral Resources Ministry, Mir Mohammad Aslam Uddin, confirmed the news to the Dhaka Tribune on Sunday.
The fuel price cut came into effect after 12am Monday.
The state authorities made the decision in reply to repeated calls from businesspeople as well as general citizens.
In January 2009, the Awami League government brought down the prices of diesel and kerosene by Tk2, and furnace oil by Tk4.
But as the global fuel prices soon went up, the prices of diesel, kerosene and octane were increased four times while furnace oil's price went up six times in 2011.
On January 4, 2013, the government again increased the prices of diesel, kerosene, petrol and octane respectively to Tk68, Tk68, Tk96 and Tk99.
As fuel prices in the international market continued to decline in recent years, the government – earlier this month – lowered the price of furnace oil by Tk18 a litre.
Earlier in February, State Minister for Power, Energy and Mineral Resources Nasrul Hamid
told the parliament that – thanks to falling global fuel prices – Bangladesh Petroleum Corporation had started gaining some profits since November 2014.
However, the BPC still had loans of around Tk26,349.81 crore even after adjusting the loans paid from November 2014, the minister said.
Federation of Bangladesh Chamber of Commerce (FBCCI) President Abdul Matlub Ahmed said the fuel price cut would help reduce the inflation rate of the country.
Matlub came up with the remarks while talking to the Dhaka Tribune over phone yesterday.
It was a long-standing demand of the businesspeople to slash fuel prices after it had drastically dropped in the global market, said Matlub adding that the decision would bring down transportation cost as well as production cost.
Matlub, who chairs the Niloy Nitol Group, urged the government to also adjust power price so that citizens can get the real benefits of the price cut.
Exporters' Association of Bangladesh President Abdus Salam Murshedy also welcomed the move, saying the price reduction would benefit different sectors including the export sector.
Murshedy said the local export items were going to be more competitive in the global market as a result of the fuel price cuts.