Furnace oil prices up by Tk 24.59 per litre

The price of furnace oil supplied by the Bangladesh Petroleum Corporation (BPC) has been increased by Tk 24.59 per litre, the Bangladesh Energy Regulatory Commission (BERC) announced on Sunday, April 12.

Under the revised pricing, the consumer rate for furnace oil has been adjusted from Tk 70.10 per litre to Tk 94.69 per litre. The new price takes effect from midnight on Sunday.

In its official notification, BERC cited the ongoing conflict in the Middle East as the primary driver behind the price revision.

"Due to the war situation in the Middle East, the price of furnace oil supplied by Bangladesh Petroleum Corporation (BPC) has been adjusted based on the average of the published furnace oil plates rate from March 1 to April 12, 2026 and the FOB price of imported crude oil in February 2026," the commission stated.

The adjustment was made in exercise of the powers conferred under Sections 22(b) and 34 of the Bangladesh Energy Regulatory Commission Act, 2003.

Furnace oil remains a critical fuel source for Bangladesh's energy and industrial sectors. Its primary consumers include the Bangladesh Power Development Board (BPDB) and government and private power generation plants that rely on the commodity for electricity production. 

Industrial facilities also depend heavily on furnace oil for various manufacturing processes, while other commercial and institutional consumers form an additional segment of demand.

Analysts warn that the sharp price increase could exert upward pressure on electricity generation costs and industrial production expenses. This, in turn, may contribute to broader inflationary trends across the economy, as higher energy input costs are often passed on to consumers through increased tariffs and product prices.

The revision comes amid heightened volatility in global energy markets. The closure of key shipping routes in the Middle East, particularly the Strait of Hormuz, has disrupted oil supplies and pushed up international crude and refined product prices.

Bangladesh, which imports the majority of its petroleum products, has been particularly exposed to these fluctuations. The country has adjusted fuel prices several times in recent months in response to changing global benchmarks.

BERC indicated that fuel prices will continue to be reviewed periodically based on international market trends and import costs. Consumers and industry stakeholders are advised to factor the new furnace oil rate into their operational planning.