Bangladesh raises furnace oil prices

From midnight, each litre will cost Tk 113.54 at the consumer level. 

The price of furnace oil supplied by BPC to Bangladesh Power Development Board (BPDB), government or private power generation plants, industrial factories and other customers has been increased by Tk 18.85.

Each litre will now cost Tk 113.54.

BERC said the new rates will remain effective until further notice.

This sharp spike will have a cascading effect on the economy. Furnace oil is a key fuel for many independent power plants (IPPs) and industrial captive power units, with IPPs accounting for about a third of national electricity consumption.

A significant price increase is expected to raise power generation costs, which could eventually be passed on to consumers through higher electricity tariffs.

Under a BERC order issued in February, furnace oil prices are adjusted every three months in line with global market fluctuations.