Furnace oil price ramped up by Tk24.59 a litre

Now the price of furnace oil is hiked, by Tk 24.59 per litre or 35 per cent to Tk 94.69 from Tk 70.10 a litre, with effect from midnight Sunday.

"The adjustment was made under Sections 34(4) and 34(6) of the Bangladesh Energy Regulatory Commission Act 2003," the BERC stated in a press release issued Sunday.

The decision followed proposals from Bangladesh Petroleum Corporation (BPC) and oil-marketing companies as well as a public hearing and a detailed review.

According to the commission, the price of furnace oil, which is a byproduct obtained from crude-oil refining, is subject to revision every three months or "as needed".

Earlier in February, the energy regulatory had reduced the price of fuel oil by Tk 15.90 per litre, or 18.48 per cent, to Tk 70.10 per litre.

Since crude oil was not imported in March, the new rate was set on international refined furnace-oil prices and the US dollar exchange rate.

A committee formed on March 15 analyzed Platts index-based average prices and exchange rates and recommended the April adjustment. The proposal was reviewed and approved in special commission meetings held on April 5 and April 12. This fuel oil is primarily used for heat and power generation in industrial boilers, furnaces and marine vessels.

Few days back, jet fuel, used for airplanes, had an across-the-board rise in the wake of global fuel-price rises do the supply disruption from the troubled Mideast.

Azizjst@yahoo.com