Questions have been raised about whether Bangladesh Petroleum Corporation (BPC) is adhering to the ‘Automatic Pricing Mechanism’ that is in place in the country to determine fuel prices.
According to the BPC’s method, the domestic price for the following month is to be determined based on the international average price for each month.
But with the increase in fuel prices from 15 to 20 taka per liter on April 19, analysts are questioning the transparency of that mathematical formula.
They say that when the price of fuel in the international market is below $100 per barrel, it is in no way reasonable for diesel to be priced at Tk 115 in the country.
In the last one month, the price of Brent crude oil in the international market has decreased by about $12-15 per barrel (from $110-115 to $95). According to sources, a decrease of $10 in the international market would result in a decrease of about 7-8 taka per liter in the local market.
As such, even though the price was supposed to decrease, the government has increased it by 15-20 taka.
In this context, CAB advisor and energy expert Dr. Shamsul Alam said that the government’s announcement to increase fuel oil prices is contradictory to the BPC’s auto pricing formula.
When the price of fuel rose in the world market, the government was able to control it, and now I don’t understand why it has become unpopular with the people by increasing prices so drastically. Those who have been holding onto fuel oil for so long and creating an artificial crisis have been given the opportunity to make more profits.
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