The government today reduced the price of furnace oil by 30 percent.

It will now retail at Tk 42, down 30 percent from the current Tk 60.

According to a notification issued by the Energy Division, the new price will come into effect from zero hour on April 1.

Energy Division officials said the price reduction will lower production costs for electricity generated in plants that use furnace oil as fuel.

Besides, the reduction in price of furnace oil will also help reduce the production costs of many industrial manufacturers who use the fuel in running their capital machinery. Those who use it to run captive power plants will see overheads decline.

Businesses, among other groups, have long been demanding the lowering of the price of all kinds of petroleum products, in light of the collapse in the price of oil globally.

Reducing the fuel oil price is the first step by the government to cater to such demands.