Energy Bangla

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Dhaka Monday,  Dec 5, 2022

‘Automated Pricing Formula’ In Place For Fuel Oils

The Energy Division has issued a gazette notification on Monday night introducing the “automated pricing formula” for internal pricing of octane, petrol, naphtha , condensate and all other crude petroleum products which are usually refined or produced at different gas fields or the Eastern Refinery on the seventh date of every month.
As per the notice, Bangladesh Petroleum Corporation (BPC) will fix the price of the items as per proposal to introduce an automated pricing formula to adjust petroleum prices against international prices on a monthly basis.
BPC Chairman said the notification is applicable for internal pricing, not at consumers’ level.
Through this notification, the Ministry of Energy Division has endorsed the Bangladesh Petroleum Corporation (BPC) proposal to introduce an automated pricing formula to adjust petroleum prices against international prices on a monthly basis bypassing the Bangladesh Energy Regulatory Commission (BERC).
If the formula is introduced, prices of diesel, kerosene, and furnace oil will go up in the country like LPG where consumers have no say against the move.
According to the sources, BPC in September made some suggestions on the price adjustment mechanism.
“The BPC has been incurring huge losses as the petroleum prices increased in the international market recently,” the Energy Division claimed at different times.
The World Bank, the Finance Ministry and many local economists had recommended introducing the automated pricing formula, but the government did not accept the recommendation.
Officials said India follows an automated formula for fixing the petroleum prices.
The World Bank and the International Monetary Fund at that time suggested that the government should deregulate domestic oil prices and introduce a system that makes automatic adjustments of oil prices in line with the international market prices.

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