BPC for 15pc cut in LPG, furnace oil prices
Thursday, 5 March 2009
The government is going to reduce the prices of liquefied petroleum gas (LPG) and furnace oil by 15 per cent, as the state-owned Bangladesh Petroleum Corporation (BPC) has already planned this moderate cut, reports UNB.
Officials said BPC has proposed to Bangladesh Energy Regulatory Commission (BERC) the 15 per cent cut in these fuel prices, likely from next week.
BPC chairman Anwarul Karim said if the proposal is approved by the BERC, the LPG price would come down to Tk 850 from the existing rate of Tk 1,000 per cylinder containing 12.5 kg fuel.
Similarly, per-litre furnace oil will cost the consumers Tk 26 instead of the existing Tk 30.
According to official sources, the BPC first moved the proposal to the Energy Division of the Ministry of Power, Energy and Mineral Resources (MPEMR) on January 5.
After scrutiny, the Energy Division, taking approval of the Prime Minister's Office, sent the BPC proposal to the BERC for final approval.
As per the BERC Act, any government decision on increasing or decreasing the tariffs of electricity or prices of petroleum fuels has to be approved by the watchdog body (BERC).
BERC member Salahuddin Ahmed said the commission is yet to take decision on the proposal. He, however, hinted that the Commission could hold a meeting next week to decide on the BPC proposal.
Sources said BPC's move for cutting the prices of LPG and furnace oil came following the downturn in the prices of the petroleum products on the international market.
The BPC produces nearly 22,000 tonnes of LPG annually. On the other hand, the private sector imports about 80,000 tonnes to meet the domestic demand. BPC's LPG sales recently declined 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 reduced the prices of diesel and kerosene by 4.35 per cent to help farmers and poor households. The prices of LPG and furnace oil were not reduced at the time.
Officials said BPC has proposed to Bangladesh Energy Regulatory Commission (BERC) the 15 per cent cut in these fuel prices, likely from next week.
BPC chairman Anwarul Karim said if the proposal is approved by the BERC, the LPG price would come down to Tk 850 from the existing rate of Tk 1,000 per cylinder containing 12.5 kg fuel.
Similarly, per-litre furnace oil will cost the consumers Tk 26 instead of the existing Tk 30.
According to official sources, the BPC first moved the proposal to the Energy Division of the Ministry of Power, Energy and Mineral Resources (MPEMR) on January 5.
After scrutiny, the Energy Division, taking approval of the Prime Minister's Office, sent the BPC proposal to the BERC for final approval.
As per the BERC Act, any government decision on increasing or decreasing the tariffs of electricity or prices of petroleum fuels has to be approved by the watchdog body (BERC).
BERC member Salahuddin Ahmed said the commission is yet to take decision on the proposal. He, however, hinted that the Commission could hold a meeting next week to decide on the BPC proposal.
Sources said BPC's move for cutting the prices of LPG and furnace oil came following the downturn in the prices of the petroleum products on the international market.
The BPC produces nearly 22,000 tonnes of LPG annually. On the other hand, the private sector imports about 80,000 tonnes to meet the domestic demand. BPC's LPG sales recently declined 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 reduced the prices of diesel and kerosene by 4.35 per cent to help farmers and poor households. The prices of LPG and furnace oil were not reduced at the time.