The government has raised fuel prices by Tk 1 per litre, effective February 1, under the automated pricing formula. Diesel and kerosene now cost Tk 105 per litre, octane Tk 126, and petrol Tk 122. The adjustment aligns local prices with global trends to ensure a stable supply. However, the Centre for Policy Dialogue (CPD) argues that prices could be reduced by Tk 10-15 per litre through a true market-based model. Despite introducing an automatic pricing mechanism in March 2024 at the IMF’s request, the government still regulates prices, preventing full alignment with international rates. CPD’s January 29 assessment highlighted that fuel prices remain artificially high, impacting economic conditions for the 2024-25 fiscal year. The new pricing structure continues to spark debate over the effectiveness of the automated system and its impact on consumers.
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