The price of unrefined fuel oil is increasing in the international market. In the recent price hike, the Brent Crude Oil prices rose by more than 86 dollars per barrel in two weeks ago.
The trend of rising fuel oil prices in the international market is a concern for Bangladesh, as we have to fulfill the 100 per cent demand for fuel oil through imports. The recent price hike in the world market will increase the import costs. It will also affect the country’s market.
World Bank says the price of fuel oil increased to 5.8 per cent in September compared to August.
As a result, the pressure will increase the import trade. On the other hand, Bangladesh Petroleum Corporation (BPC) will have to losses.
In Bangladesh, the price of fuel oil is determined bureaucratically. Most of the case, the price is not adjusted with the international market, whether the prices rise or decrease.
According to the World Bank, compared to August, Brent Crude prices rose in September to $ 73 from 1 cent to 78 dollars in 9 cents. On the other hand, West Texas Intermediate (WTI) prices of barrel-per-rupee rose from $ 68 to $ 70 cents.
World Bank and various international agencies forecast that the price will rise to $ 80 by December. But in September 80 dollars exceeded. Analysts say Brent crude barrel can exceed $ 100 in international markets in the coming days.
The World Bank announced in April that the average price of fuel oil can stand at 65 dollars per barrel in the current year. It says that the average rate of oil barrel per barrel in 2010 was $ 53. The fuel oil price was very low at the beginning of 2016.