Govt is set to implement an automatic fuel oil pricing system in March 2024, aligning with international market rates to meet International Monetary Fund (IMF) loan conditions. The draft formula for the system is expected to be finalized by December 12, 2023, coinciding with the next IMF board meeting.
Once approved, the Bangladesh Petroleum Corporation (BPC) will implement the system after Prime Minister Sheikh Hasina’s approval. The pricing will be based on the day’s exchange rate, including customs tax, dealer commission, development costs, operating expenses, transportation charges, and a small profit margin. The system aims to eliminate fuel oil smuggling by aligning prices with India and fostering a competitive market for consistent pricing across public and private sectors.