The government has announced a reduction in fuel oil prices for April 2024, following the automatic fuel oil pricing system that aligns with international market trends. Effective from April 1, 2024, diesel and kerosene will be sold at Tk106 per litre, marking a decrease of Tk2.25 from the prices in March. This adjustment was detailed in a gazette notification issued by the Ministry of Power, Energy, and Mineral Resources today (31 March).

The notification also states that the prices of octane and petrol will remain unchanged at Tk126 and Tk122 per litre, respectively.

This adjustment comes in accordance with the newly implemented automatic pricing system initiated by the government on 7 March, in compliance with the terms outlined by the International Monetary Fund (IMF) for a $4.7 billion loan. Under this system, fuel prices will be reviewed and adjusted monthly based on international market fluctuations. The Bangladesh Petroleum Corporation (BPC) had previously issued guidelines for Automatic Fuel Oil Pricing on 29 February.

According to these guidelines, prices for various petroleum fuels, including petrol, diesel, octane, kerosene, furnace oil, jet fuel, and marine fuels, will be determined automatically based on international market prices. The pricing structure encompasses various factors such as import taxes, operational expenses, administrative costs, and VAT, among others.

It is noted that diesel accounts for over 70% of the annual fuel oil demand in Bangladesh, followed by petrol, octane, and kerosene. The BPC remains the sole importer and distributor of fuel in the country. With transportation and agriculture sectors being the primary consumers, this reduction in diesel and kerosene prices is expected to positively impact various sectors of the economy.