Bangladesh Energy Regulatory Commission (BERC) has reduced the price of furnace oil by 18%, bringing it down from Tk 86 to Tk 70.10 per liter for public and private power producers as well as industrial users.
The new rate, effective from 12:00 am today, marks the first time BERC has formally set the furnace oil price following a public hearing held last month. Previously, the Bangladesh Petroleum Corporation (BPC) determined the price independently.
BPC supplies approximately 8–9 lakh tons of furnace oil annually, primarily to public power generation companies, alongside several private power plants and industrial consumers.
During a public hearing on January 29, the Bangladesh Power Development Board (BPDB) alleged that BPC had overcharged around Tk 644 crore over the past 18 months by maintaining a fixed price of Tk 86 per liter, despite procurement costs fluctuating between Tk 57 and Tk 83 per liter during different months.
BPDB proposed reducing the price to Tk 50.83 per liter, while BPC suggested a marginal cut of Tk 1, proposing a revised rate of Tk 85 per liter.
Under BERC’s final decision, the margin and transmission charges for oil marketing companies — Padma, Meghna, Jamuna, and Standard Asiatic Oil Company Limited — have been set at Tk 0.71 and Tk 1.20 per liter, respectively.
The price adjustment is expected to ease fuel costs for power producers and industrial users amid ongoing efforts to stabilize the country’s energy sector.
