The government has announced a reduction in all types of fuel prices in Bangladesh, effective from today, Sunday, 1 February, aligning domestic rates with fluctuations in the global market.
According to a statement issued late on Saturday, 31 January, by the Energy Division of the Ministry of Power, Energy and Mineral Resources, the prices of diesel, kerosene, petrol, and octane have each been reduced by BDT 2 per litre for the month of February. The new prices are as follows:
| Fuel Type | Previous Price (BDT per litre) | New Price (BDT per litre) | Reduction (BDT per litre) |
|---|---|---|---|
| Diesel | 102 | 100 | 2 |
| Kerosene | 114 | 112 | 2 |
| Petrol | 118 | 116 | 2 |
| Octane | 122 | 120 | 2 |
The Energy Division noted that the automatic fuel pricing mechanism, which adjusts domestic fuel rates in line with international market trends, has been in operation since March of last year. Under this system, prices are reviewed and revised every month to reflect global fluctuations.
In addition to conventional fuels, the Bangladesh Energy Regulatory Commission (BERC) now determines the monthly price of liquefied petroleum gas (LPG) in accordance with international market rates. Previously, the Bangladesh Petroleum Corporation (BPC) was responsible for periodic adjustments of jet fuel and furnace oil prices, used respectively in aviation and power generation. Diesel, kerosene, petrol, and octane prices remain under the jurisdiction of the Energy Division.
The BPC reports that Bangladesh’s annual fuel demand currently stands at approximately 7.5 million tonnes. Of this, diesel accounts for around 75% of consumption, primarily used for agricultural irrigation, transport, and power generators. The remaining 25% is met through petrol, octane, kerosene, jet fuel, furnace oil, and other fuel types. Petrol and octane sales are consistently profitable for the BPC.
Officials emphasised that monthly fuel pricing is a global practice, not only in neighbouring India but also in developed economies. The automatic pricing mechanism was introduced on 29 February last year as a condition of the International Monetary Fund (IMF) loan agreement. The system ensures that domestic fuel prices decrease when international rates fall and rise when global prices increase, providing a market-responsive approach to energy pricing in Bangladesh.