The government has announced a reduction in fuel oil prices across the country, bringing relief to consumers at the beginning of January. According to a notification issued by the Energy and Mineral Resources Division on Wednesday night (December 31), the prices of diesel, kerosene, petrol and octane have been reduced by Tk 2 per litre. The new prices came into effect on Thursday (January 1).

Under the revised rates, diesel is now priced at Tk 102 per litre, while kerosene costs Tk 114 per litre. Petrol has been fixed at Tk 118 per litre and octane at Tk 122 per litre.

Officials said the adjustment was made under the automatic fuel pricing mechanism introduced in March last year to align domestic prices with the international market. Under this system, fuel prices are reviewed and adjusted on a monthly basis.

According to Bangladesh Petroleum Corporation (BPC), the country’s annual fuel demand stands at around 7.5 million tonnes, with diesel accounting for nearly 75 percent of total consumption. Diesel is mainly used in agriculture, transportation and power generation.

The government stated that the automatic pricing mechanism was introduced as part of commitments under an IMF loan agreement. As a result, any rise or fall in global fuel prices will now be reflected in the domestic market accordingly.