Local fuel oil demand falls on govt move to cut price
Monday, 13 October 2008
Shakhawat Hossain
The local fuel oil demand dropped by at least 10 per cent in the last one week as the users resorted to belt-tightening on oil consumption following a government move to cut prices, officials and traders said Sunday.
They also said the users have adopted the strategy for using less oil until the downward price adjustment of oil in the local market, which is first of its kind in many years, to save some extra bucks.
"Users do not want to spend additional money before the government implements its decision on price cut," said Bangladesh Petrol Pump Owners Association president M Nazmul Hoque.
"We saw 10 per cent to 15 per cent decline in demand for petroleum products in the last one week," he added.
The government last week decided to cut oil prices after a dramatic fall in the crude oil prices in the international market. During the last two months the price of oil per barrel dropped by 47 per cent to below US$80 from the highest price of $147 of July 11 last.
The oil price was last adjusted in the domestic market in July last, which led to price hike of different types of oils by 34 to 37 per cent, to offset the huge losses incurred by the state-owned Bangladesh Petroleum Corporation (BPC).
BPC Chairman Anwarul Karim told the FE that the demand for oil dropped in the domestic market following the government's move to cut its prices in the backdrop of the falling prices in the international market.
He, however, immediately could not say anything about the extent of cut.
The local fuel oil demand dropped by at least 10 per cent in the last one week as the users resorted to belt-tightening on oil consumption following a government move to cut prices, officials and traders said Sunday.
They also said the users have adopted the strategy for using less oil until the downward price adjustment of oil in the local market, which is first of its kind in many years, to save some extra bucks.
"Users do not want to spend additional money before the government implements its decision on price cut," said Bangladesh Petrol Pump Owners Association president M Nazmul Hoque.
"We saw 10 per cent to 15 per cent decline in demand for petroleum products in the last one week," he added.
The government last week decided to cut oil prices after a dramatic fall in the crude oil prices in the international market. During the last two months the price of oil per barrel dropped by 47 per cent to below US$80 from the highest price of $147 of July 11 last.
The oil price was last adjusted in the domestic market in July last, which led to price hike of different types of oils by 34 to 37 per cent, to offset the huge losses incurred by the state-owned Bangladesh Petroleum Corporation (BPC).
BPC Chairman Anwarul Karim told the FE that the demand for oil dropped in the domestic market following the government's move to cut its prices in the backdrop of the falling prices in the international market.
He, however, immediately could not say anything about the extent of cut.