Difference between revisions of "Fuel Prices Bangladesh"

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{{Fuel Price Factsheet
 
{{Fuel Price Factsheet
 
|Fuel Price Country=Bangladesh
 
|Fuel Price Country=Bangladesh
|Fuel Pricing Policies=The „Bangladesh Energy Regulatory Commission“ (BERC, http://www.berc.org.bd/) appears to be in charge of setting fuel prices in Bangladesh. However, no detailed information on fuel prices and price composition is available on their website.  
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|Fuel Pricing Policies=Fuel prices are controlled by government and not adjusted regularly. Since the beginning of 2011, prices were raised in May, Aug, and Nov 2011 and Jan 2012. In Mar 2012, the price of diesel needed to rise by another 45% to break even. Bangladesh Petroleum Corporation (BPC) in 2011 negotiated with Malaysia’s national oil company Petronas and the Philippines National Oil Company to extend US$550 million and US$250 million, respectively, on deferred payment for fuel oil for up to one year with minimal interest. BPC has taken out loans from state-owned commercial banks, received budgetary transfers to cover its operating losses, and relied on banks to provide much of the foreign exchange needed, because delayed budgetary transfers have caused BPC to regularly lack funds to purchase foreign exchange for oil imports. IMF reported in Mar 2012 that government was expected to adopt an automatic adjustment formula by December 2012, which would ensure full pass-through of changes in international prices.
  
According to sources (see →App.A1), gasoline and diesel are subsidized. In May 2011, the prices for fuels were increased by 2 taka per litre to lower subsidies on the long term. This was the first price change since January 2009, when prices were significantly reduced due to low crude oil price. The last price increase was in summer 2008, when crude oil prices reached record levels.
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(Source:  Kojima, Masami. (2013, forthcoming). “Petroleum product pricing and complementary policies:Experience of 65 developing countries since 2009.” Washington DC: World Bank.)
 
 
The Bangladesh Petroleum Corporation is the countries only oil goods importer and distributor, showing an immense deficit per year induced by fuel subsidies (20 billion taka = ~285 million US$, →App. A2).
 
 
|Fuel Currency=BDT
 
|Fuel Currency=BDT
 
|Fuel Price Exchange Rate=60.122
 
|Fuel Price Exchange Rate=60.122

Revision as of 15:39, 11 February 2013

Part of: GIZ International Fuel Price database
Also see: Bangladesh Energy Situation

Fuel Pricing Policies

Local Currency: BDT
Exchange Rate: 60.122


(2010/11/17)

Last Update: 2011/05/01

Fuel prices are controlled by government and not adjusted regularly. Since the beginning of 2011, prices were raised in May, Aug, and Nov 2011 and Jan 2012. In Mar 2012, the price of diesel needed to rise by another 45% to break even. Bangladesh Petroleum Corporation (BPC) in 2011 negotiated with Malaysia’s national oil company Petronas and the Philippines National Oil Company to extend US$550 million and US$250 million, respectively, on deferred payment for fuel oil for up to one year with minimal interest. BPC has taken out loans from state-owned commercial banks, received budgetary transfers to cover its operating losses, and relied on banks to provide much of the foreign exchange needed, because delayed budgetary transfers have caused BPC to regularly lack funds to purchase foreign exchange for oil imports. IMF reported in Mar 2012 that government was expected to adopt an automatic adjustment formula by December 2012, which would ensure full pass-through of changes in international prices.

(Source: Kojima, Masami. (2013, forthcoming). “Petroleum product pricing and complementary policies:Experience of 65 developing countries since 2009.” Washington DC: World Bank.)

Fuel Prices and Trends

Gasoline 95 Octane Diesel
in USD*

in Local Currency

* benchmark lines: green=US price; grey=price in Spain; red=price of Crude Oil



Fuel Price Composition

Price composition.



No official information available online.

According to sources (http://in.reuters.com/article/2011/05/06/idINIndia-56817120110506), there is a subsidy of 33.44 taka per litre of diesel (~43% of total costs) and 8.2 taka per litre of gasoline (~10% of total costs).



At a Glance

Regulation-Price-Matrix
Transparency of
Price Composition
Transparency of Pricing
Mechanism / Monitoring
IFPDB matrix background.png
IFPDB matrix point.png
IFPDB trafficlight red.png IFPDB trafficlight explanation.png IFPDB trafficlight red.png



Sources to the Public

Type of Information Web-Link / Source
Other Information http://www.emrd.gov.bd/index.html
Other Information http://www.berc.org.bd/
Other Information http://www.bpc.gov.bd/
Wholesale Prices http://www.bpc.gov.bd/contactus.php?id=39


Contact

Please find more information on GIZ International Fuel Price Database and http://www.giz.de/fuelprices

This is a living document. If you have any comments or suggestions, please feel free to contact us: Armin.Wagner@giz.de