The government has decided to reduce the price of fuel oil (diesel, petrol and octane) by taka five per liter, which will come into effect from Tuesday, according to the Ministry of Power, Energy and Mineral Resources.
The government on August 5 increased the diesel price by Tk34 to Tk114 per litre, octane by Tk46 to Tk135 and petrol by Tk44 to Tk130 per litre. The price of kerosene was also increased by 42.5% to Tk114, in the across-the-board raise.
As a record hike in fuel prices by the government triggered severe criticism from people across the board, the high-up in the government promised to reduce the fuel prices.
However, State Minister for Power, Energy and Mineral Resources Nasrul Hamid on Monday said the government is going to adjust the price of fuel oil in accordance with the reduction in import duty on diesel and withdrawal of advance tax.
“A calculation is in progress regarding this. A decision on the new fixed prices may be announced in one or two days,” said State Minister for Power, Energy and Mineral Resources Nasrul Hamid while talking to reporters at the Secretariat on Monday.
“It is being considered to adjust fuel prices thanks to the tax cut in fuel import. But the issue is still under review. We hope there can be a change here,” said the state minister.
Nasrul Hamid said, “During the import of oil, there were some benefits regarding our advanced tax. We will get some advantages in fuel oil import tariff. Because of that advantage, we are thinking that maybe we can somewhat adjust the price of fuel.”
He said this noting that the price of fuel oil in the world market has increased again. The oil price in the international market has now gone above $150 per barrel, which was $130 earlier. How much adjustment can be made in this situation is also a matter of seriousness.
"I hope an adjustment will happen," he told the reporters.
The National Board of Revenue (NBR) on Sunday waived entire advance tax on diesel aiming to cut import cost of the key gasoline item. It also reduced 5 per cent import duty from 10 per cent. With the reduction, the duty on diesel imports comes down to 22.75 percent. The reduced import tariff would remain effective until December 31, 2022.
Fuel price hike has been one of the most discussed issues in the country that have further fueled the already high inflation, causing people to fall into grave distress.
With the slash in import tax on diesel, which accounts for about 73% of the total fuel consumption in the country, by about one-third, the government aims to give some relief to the people.
The tax cut has created an opportunity to reduce costs of transportation, irrigation, and other services that rely on diesel.
Apart from sedans or SUVs, public transports, and all types of freight transports are operated using diesel. Following the recent hike in diesel price, fares of those transports have already gone up, and subsequently prices of almost all commodities have surged.
Earlier in the day, after a meeting with petrol pump owners, Bangladesh Petroleum Corporation (BPC) Chairman ABM Azad told reporters that the impact of the reduction in advance tax and import duty on diesel prices could be known within the next two to three days. However, it depends on the Energy Ministry when the benefits will reach the consumer level.
