The New Nation - Internet Edition

UNB, Dhaka

The Energy Division Sunday sought the Prime Minister's direction on fuel-price reduction after receiving a position paper from Bangladesh Petroleum Corporation (BPC) as to how much.

Admitting to a fast move made by the new government on this priority task, Energy Secretary Mohammad Mohsin said his office is working on the matter as it has to consult some other ministries like the Ministry of Finance and also Bangladesh Energy Regulatory Commission (BERC).

"Receiving the position paper on fuel price, we have already sought directive from the Prime Minister who is also the minister for Power and Energy Ministry. We're now waiting for the directive," he told UNB.

BPC, the state-owned organisation responsible for importing and marketing petroleum products, moved quickly for cuts in the prices of petroleum fuels following a decision of the new Cabinet.

Sources said BPC completed its calculating to determine how much the prices of petroleum could be reduced.

The Awami League-led Grand Alliance government in its maiden Cabinet meeting Wednesday decided to reduce the petroleum prices, particularly that of diesel used by farmers in irrigation for farming-the most vital concern of recent times in the wake of food crisis the world over.

Lowering the high prices of agri-inputs, including that of diesel, through providing subsidy was one of some outstanding election pledges of the Grand Alliance, and the cabinet took the matter in right earnest.

The immediate-past caretaker government had raised the fuel prices by 36 percent following sharp rises on the international market.

But then, when the prices came down crashing, the caretaker government reduced the prices twice-by 12 percent in September and then by 4.3 percent in December last year. And so the local fuel prices are still higher compared to the international rates.

After the latest price adjustment, diesel and kerosene prices came down to Tk 46, octane to Tk 77 and petrol to Tk 74 per litre on the local market.