Written by The Banking Post
The government has lowered the prices of all major petroleum products by Tk 2 per litre for January, easing fuel costs across the board under its automatic fuel pricing mechanism.
With the revision, diesel will now sell at Tk 102 per litre, kerosene at Tk 114, petrol at Tk 118 and octane at Tk 122. Previously, the prices stood at Tk 104, Tk 116, Tk 120 and Tk 124 per litre respectively. The new rates bring domestic fuel prices back to levels last seen in July–August of the previous year.
An order issued by the Energy and Mineral Resources Division said the price adjustment aims to ensure uninterrupted supply of fuel at reasonable rates. A gazette notification formalising the January prices has also been published.
Officials said the pricing is determined under the automatic fuel pricing guideline introduced in February 2024. The formula is designed to maintain a no-profit, no-loss position for the state-run Bangladesh Petroleum Corporation, in line with recommendations from the International Monetary Fund.
Under the guideline, fuel prices are calculated by factoring in international benchmark prices, import duties, advance income tax and value-added tax, along with operational, administrative and maintenance costs. Margins for the petroleum corporation and distributors are also included.
For international price references, the government uses Platts assessments for refined products and the S&P Global Platts Dated Brent benchmark for crude oil purchases.
The guideline also classifies petrol and octane as premium fuels, requiring their prices to remain higher than diesel. Accordingly, the price gap between octane and diesel must be at least Tk 10 per litre in the domestic market.
