The government has cut retail prices of all major fuels by BDT 2 per litre, citing alignment with international markets under an automatic pricing mechanism.

The new prices, effective from today, set diesel at BDT 100 per litre, kerosene at BDT 112, petrol at BDT 116 and octane at BDT 120. The Ministry of Power, Energy and Mineral Resources announced the cuts in a late Saturday notification.

The February reduction is the latest monthly adjustment since the government introduced an automatic fuel pricing framework in March last year. The system adjusts domestic prices each month in line with global market movements.

According to officials at the state-owned Bangladesh Petroleum Corporation (BPC), the country’s annual fuel demand stands at about 7.5 million tonnes. Diesel accounts for roughly 75 percent of consumption, mainly for agricultural irrigation, transport and generators. The remainder is met by petrol, octane, kerosene, jet fuel and furnace oil. BPC consistently makes a profit on sales of octane and petrol.

The Energy and Mineral Resources Division sets prices for diesel, kerosene, petrol and octane, while the Bangladesh Energy Regulatory Commission (BERC) now makes monthly price adjustments for liquefied petroleum gas (LPG). BERC has also taken over regular price adjustments for jet fuel and furnace oil, previously handled by BPC.