The prices of liquefied petroleum gas (LPG) and furnace oil have been reduced by 15 per cent with effect from Saturday midnight, reports UNB.
As per the new prices, a 12.50 kg cylinder of LPG price will be selling at Tk 850 instead of Tk 1000 while furnace oil at Tk 26 per litre instead of Tk 30.
The new prices are coming into effect following an approval by the Bangladesh Energy Regulatory Commission (BERC) to a proposal placed by the state-owned Bangladesh Petroleum Corporation (BPC).
BPC Chairman Anwarul Karim said they received the BERC approval Friday.
Earlier, the BPC moved the proposal to the Energy Division of the Ministry of Power, Energy and Mineral Resources on January 5. After scrutiny, the Energy Division, taking approval from the Prime Minister's Office, sent the BPC proposal to the BERC for the final approval.
As per the BERC Act, any government decision on increasing or decreasing the tariff of electricity or the price of any petroleum fuel has to be approved by the BERC. Source said the BPC moved for cutting the prices of LPG and furnace oil following the declining trend of the petroleum products on the international market.
The BPC produces nearly 22,000 tonnes of LPG annually, while the private sector imports about 80,000 tonnes to meet the domestic demand. The BPC's LPG sale has recently fallen as private importers reduced the price of the product.
The BPC also produces around 300,000 tonnes of furnace oil annually at the Eastern Refinery from the imported crude oil during the production of diesel, kerosene and petrol.
Earlier, the government had reduced the prices of diesel and kerosene prices by 4.35 per cent to help farmers and poor households. The prices of LPG and furnace oil were not reduced at that time.
