The government has increased the prices of all four types of petroleum fuel by Tk 1 per litre, effective tomorrow [February 1], according to a gazette notification from the Energy and Mineral Resources Division.

Under the new pricing, diesel and kerosene will now cost Tk 105 per litre, up from Tk 104. The price of octane has been set at Tk 126 per litre, up from Tk 125, while petrol will now cost Tk 122 per litre, up from Tk 121.

The price adjustment was made under the automated pricing formula, aligning local fuel prices with global market trends to ensure an uninterrupted supply of petroleum products at an economically viable rate, the Energy and Mineral Resources Division said.

Meanwhile, the Centre for Policy Dialogue (CPD) has recently said the government could reduce fuel prices by Tk 10-15 per litre by using a market-based pricing model.

Fuel prices have been reduced under the automatic pricing formula. But the government is still fixing fuel prices, which do not reflect the international market, said CPD officials at a briefing at its office on January 29 to present its assessment of the state of Bangladesh's economy for the 2024-25 fiscal year.

At the International Monetary Fund's request, the government introduced the automated fuel pricing mechanism in March 2024 to reflect international market prices monthly.