In my opinion, there should be no subsidy for octane, as it is mostly used by sedans and some mini-luxury buses, usually owned and used by well-to-do persons. Reduction of prices may be considered in case of kerosene which is mostly used in rural areas and diesel oil (HSD) usually used by public buses and trucks.
Further, the new fuel oil pricing should not be based on import price of $ 65 a barrel, rather it should be based on $ 75-80 per barrel to provide some cushion, as world prices can be manipulated and in view of increasing violence in the Middle East which may lead to price escalation.
The government should also consider the amount of subsidy paid out for octane, petrol and aviation fuel and try to recover the same taking advantage of the lower import cost. Overall a conservative policy will be justified in national interest. The government should rather allow a rebate on import duties for all capital machinery for industries and power generation and especially for alternative sources of energy that do not need usual fuel for power generation. That will be a wise and crucial decision in national interest.
Engr.S.A.Mansoor
Dhaka.
sam@dhakacom.com
Pricing of fuel oil
FE Team | Published: May 28, 2015 00:00:00 | Updated: November 30, 2026 06:01:00
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