Bangladesh to cut fuel prices from Sunday midnight

October 26th, 2008 - 9:44 pm ICT by IANS  

Dhaka, Oct 26 (Xinhua) Bangladesh will cut fuel prices by at least 12 percent, effective from Sunday midnight, in the wake of the fall in global oil prices.As per the new rates, diesel and kerosene will cost 48 takas from the earlier price of 55 takas a litre.

The price of octane will be reduced to 80 takas from 90 takas a litre, while petrol price will be reduced to 78 takas from 87 takas per litre.

In July 2008, Bangladesh’s caretaker government raised the fuel prices by 35 percent after the crude oil price reached $147 per barrel in international markets.

Announcing the price cut at a press conference here Sunday, M. Tamim, special assistant of the chief advisor for power and energy ministry, said the government would reduce the petroleum price due to its declining trend in global markets.

He said despite the fall in oil prices, the government still has to provide subsidy in diesel and kerosene. However, there is no subsidy in the price of octane and petrol, he said.

Tamim said in the first quarter of the current fiscal (from July 2008 to June 2009), the government will contribute 14 billion takas ($200 million) as subsidy to the petroleum business.

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