“The price of fuel oil was to be reduced in two stages,” he said.
“We asked the government for permission to reduce prices, but the global price of oil started rising suddenly. According to the World Bank’s calculations, the price of oil may rise further. As a result we cannot bring down the price of oil now.”
Despite falling oil prices on the world market in the past two years, the Bangladesh Petroleum Corporation had kept prices unchanged in an effort to subsidise earlier losses.
From $105 per barrel in 2012, it dropped to as low as $33 in 2016.
In response to pressure from various sectors, the price of diesel and kerosene oil was reduced by 4 percent on Apr 24, 2016.
The price of octane and petrol was reduced by 10 percent. A few days before that, the price of furnace oil was revised downward from Tk 60 a litre to Tk 42.
Consumers demanded a further price reduction after the drop in price failed to bring down transport cost.