The government has reduced tariff of different refined petroleum fuels at condensate fluctuation plants as the private sector gets more profit from it taking advantage of lower crude fuel prices on the international market.
The latest adjustments will take effect from November 2014 but it will not impact the consumers end, official concern said.
A gazette to this end has already been issued by Energy and Mineral Resources Division (EMRD). EMRD Joint Secretary Mohammad Ahsanul Jabbar signed it on March 8.
As per the adjustments at the production end, per kilo litre of diesel would be reduced by Tk 4.96, kerosene by Tk 5.69, petrol by Tk 29.28, octane by Tk 29.98, condensate (heavy) by Tk 16.18 and condensate (light) by Tk 20.20.
On petroleum fuel adjustments, Jabbar said, “We’ve already sent the gazette for publication but we hope to get the copy by tomorrow (Wednesday).”
The new adjustments will not affect market prices of petroleum fuels, he added.
Another official of Bangladesh Petroleum Corporation (BPC) said the private sector has got windfall profit on the government-set prices since October 2014 after a drastic tariff fall on international market.
“The state-owned entity would now get additional profit from the adjustments.”
The BPC is now purchasing 1,18,880 tonnes of petrol, 43,778 tonnes of octane, 97,400 tonnes of diesel and 24,000 tonnes of kerosene from private condensate fluctuation plants annually, an official said.
The government produced condensate of 350,998 tonnes in 2014. Of them, 30,892 tonnes were produced by Bangladesh Gas Fields Companies Limited (BGFCL), 53,585 tonnes by Sylhet Gas Fields Company Limited (SGFCL), 11,670 tonnes by Bapex and 254,851 tonnes by international oil companies.
Last year, it had a target to produce fuels of 473,627 tonnes through processing condensate. Of them, 1,70,668 tonnes by SGFCL, 48,272 tonnes by BGFCL, 35,687 tonnes by RPGCL, 60,000 tonnes by ERL and 173,627 tonnes were produced through private companies.
The private plants have the capacity to refine 287,000 tonnes.
Huge volumes of gas and condensate are produced from 19 gas fields. Bibiyana, Jalalabad and Kailastila gas fields produce high-quality gas and condensate.