Bangladesh Petroleum Corporation (BPC) has proposed setting furnace oil prices Tk30 per liter above international market rates, suggesting a new price of Tk81 per liter.
The Bangladesh Power Development Board (BPDB), the country’s largest consumer of furnace oil, argued that the price should not exceed Tk50.82 per liter based on current international rates.
The Bangladesh Energy Regulatory Commission (BERC) held its first-ever public hearing on furnace oil pricing on Thursday. BERC’s technical committee noted that the existing Tk86 per litre price could be reduced to Tk74.04. Chairman Jalal Ahmed said the commission would carefully analyze all data to ensure a fair outcome for all stakeholders.
Consumers attending the hearing criticized BPC’s pricing formula and high costs. BPC General Manager ATM Selim said the international price of furnace oil fell from $478.45 per barrel in January 2025 to $340.94 per barrel in December, and that the current Tk81 proposal accounts for duties and other costs.
BPDB challenged BPC’s figures, saying it incurred huge losses buying fuel from BPC, while BPC earned Tk4,316 crore in profit in 2024–25. BPDB reported a net loss of Tk17,021 crore despite Tk38,637 crore in subsidies.
BPDB Director Jahangir Alam Molla said private companies imported furnace oil at Tk57 per liter in December 2025, while BPDB had to pay Tk86 per liter. “We want to provide affordable energy, but BPC and its subsidiaries are prioritizing profits. High prices could disrupt power supply,” he warned.
BPDB Chairman Md Rezaul Karim added that independent imports are cheaper than BPC supplies and stressed the need for periodic price adjustments to ease the public burden.
State-owned distributors—Padma Oil, Meghna Petroleum, Jamuna Oil, and Standard Asiatic Oil—requested an increase in distribution margins from 55 paisa to up to Tk1.20 per litre. BERC’s technical committee recommended 85 paisa. Companies disclosed strong profitability and staff bonuses, funded from non-operational income.
A consumer criticized BPC’s authority to set fuel prices, saying BERC alone has the legal mandate and that pricing should consider all fuels, not just furnace oil.
BERC will accept written opinions on the hearing until February 3. Members Md Abdur Razzak, Md Mizanur Rahman, Syeda Sultana Razia, and Brigadier General (retd) Shahid Sarwar attended the session.
