The New Nation - Internet Edition

BDnews 24.com

Fuel prices will come down from midnight Sunday, following the governments decision to fall in line with global oil prices, a special aide said

The energy ministry has sent a proposal regarding cuts in the fuel prices to the chief advisers office for his approval, M Tamim, the chief advisers special assistant in charge of energy, told bdnews24.com.

Ministry officials said the proposed reductions would cut the price of diesel and kerosene to Tk 48-50 from Tk 55; the price of octane would come down to Tk 80-83 from Tk 90; petrol, now Tk 87, would be set at Tk 2 less than the price of octane.

With the chief advisers approval, the reduced price will come into effect from midnight Sunday, said Tamim.

The government had hiked fuel prices on June 30, on the back of rising oil prices on the global market-raising the prices of diesel and kerosene to Tk 55 from Tk 40, of petrol to Tk 87 from Tk 65, and octane to Tk 90, up from Tk 67.

Crude oil prices per barrel have plummeted since June, from a life-time high of over $145 to $62.7 on Friday.

Bangladesh sees an annual demand of nearly 4 million tonnes of petroleum. Some 3.7 million tonnes petroleum was consumed in 2007-2008, including 2.3 million tonnes of diesel. The demand for 2008-2009 fiscal has been estimated at 3.8 million tonnes.