Fuel oil price in Bangladesh is not dependant on international market. State owned Bangladesh petroleum Corporation (BPC) imports fuel oil and sells in local market after refining in its oil refinery at Chittagong. The government sells the fuel in subsidized rate. The Bangladesh government tries to help local industry and farmers by this subsidy. Farmers in many parts of Bangladesh use diesel for irrigation.
But fuel price in International market has increased and this huge subsidy has become a burden of the government.
International Monetary Fund (IMF) has always been advocating for lifting the subsidy. The leftists have seen it as a conspiracy to destroy the local industry.
Now the finance minister MA Muhith has said that the fuel oil price should be increased. But he thinks diesel oil price should be the same as now. The decision of fuel price adjustment comes from the energy regulatory commission. They finalize it after public hearing with various stakeholders of the country.