The Bangladesh Petroleum Corporation (BPC) has said there is no likelihood of a fuel price increase in the country in January.
BPC Chairman Md Amin Ul Ahsan confirmed this information to Dhaka Tribune on Saturday.
Amin said: “According to the current dollar assessment in the international market, while we may not be able to reduce fuel prices in January, there is no possibility of an increase.”
The BPC chairman explained the reason for this, saying: “Our dollar assessment target is around Tk120-121, while the current exchange rate is Tk127-128. However, recent negotiations with foreign companies for fuel purchases have resulted in a saving of over $3.50 per product in determining the premium.
“As a result, the BPC is saving Tk7,670 crore on fuel imports. Hence, based on the regular price adjustments made by the Ministry of Power, Energy and Mineral Resources, the possibility of a price increase in January is unlikely, even if there is no reduction.”
According to BPC sources, the premium for fuel imported under government-to-government agreements was $12.3, but it has been reduced to $8.83 through discussions.
This will result in a savings of about Tk7,670 crore on the import of 2.565 million tons of fuel over the next six months.
BPC data indicates that under G-to-G agreements, suppliers receive a premium on fuel imports in addition to the international price per barrel.
Currently, from July 1 to December 31, the premium for refined diesel is set at $8.75 per barrel.
According to this, from July to December, the price of Jet A-1 fuel was $10.88 per barrel, furnace oil $46.70 per barrel, octane $9.88 per barrel and marine fuel $76.88 per barrel.
For the first half of 2025 (January 1 to June 30), the premium for refined diesel has been reduced to $5.11 per barrel, a decrease of $3.64 from the previous price.
As a result, from January to June 2025, the price of Jet A-1 fuel will drop by $3.56 to $7.32 per barrel, furnace oil will decrease by $2.02 to $44.68 per barrel, octane will drop by $3.95 to $5.93 per barrel and marine fuel will decrease by $3.98 to $72.90 per barrel.
The BPC has agreements with eight state-owned supplying companies for refined fuel: Unipec Singapore Private Limited, Indonesia’s PT Bumi Siak Pusako (BSP), Malaysia’s Petronas, Thailand’s PTT International Trading PTE Limited, the UAE’s Emirates National Oil Company (ENOC), Singapore’s PetroChina Limited, Oman’s OQ Trading Limited and India’s Indian Oil Corporation Limited (IOCL).
Notably, fuel prices are determined based on adjustments in the international market rates, with the additional costs such as shipping and insurance from the supplying companies, referred to as the “premium.”
dhaka tribune