The Bangladesh Energy Regulatory Commission (BERC) wants to adjust the price of jet fuel (aircraft fuel) every 3 months. Other commissions will remain unchanged, the company is thinking of adjusting only the import price like LP gas.
After the public hearing, BERC has been announcing the price of LP gas every month since April 12, 2021. BERC has been adjusting the price every month by adjusting that part if the international market price of import-dependent LP gas is more or less. BERC Chairman Jalal Ahmed said that BERC is thinking about the same formula.
He told Barta24.com that initially, thoughts are being had about adjusting the price every 3 months. A public hearing will be held on March 23. The opinions of all parties will be taken there and then a final decision will be made.
Why not every month like LP gas! In response to the question, the BERC Chairman said that the users of jet fuel are very limited. That is why it has been decided to adjust it every 3 months initially. Later, a decision will be taken after considering the situation.
Bangladesh Petroleum Corporation (BPC) itself is the importer of this product and they have been setting the price. This is the first time that BERC is going to set the price of jet fuel. In a notification issued by the Interim Government's Energy and Mineral Resources Division on September 18, the authority to set the price of jet fuel was vested in BERC. After that, BPC has applied for price adjustment.
On the other hand, jet fuel marketing company Padma Oil Company has applied to increase their distribution charges. The company said in its proposal that supply and marketing costs 2.11 taka. According to the existing scheme, only 95 paisa is being collected there.
To participate in the public hearing on jet fuel to be held on March 23 for the first time, names must be registered by March 18. For this, the name must be submitted in writing to BERC.
BERC Chairman Jalal Ahmed told Barta24.com, since there is no formula in advance, we have also sat with BPC, and their formula has been taken into account. In addition, the jet fuel prices of Singapore, Kuala Lumpur, Dubai, Jeddah and expatriate-populated countries are being verified. BPC cited the examples of Kolkata, Karachi, Delhi, and the issue of expatriate-populated routes must be kept in mind. The matter will be resolved through a hearing.
According to the BPC report, 73 lakh 46 thousand MT of fuel oil was used in the 2023-24 fiscal year. Of this, diesel is 67.19 percent, furnace oil is 11.99 percent, followed by Jet-A One 6.42 percent while Petrol 6.19, octane 5.36, kerosene 1.05, others 1.80 percent.
BERC was established as a neutral and quasi-judicial body through the passage of the Energy Regulatory Commission Act in 2003. BERC, which was formed to ensure the accountability of gas and electricity distribution companies and the rights of consumers, originally started its journey in 2008. Since the regulations that gave it the authority to set the prices of all types of energy were pending in the law, BERC had been setting the prices of only gas and electricity. So far, 13 regulations have been formulated. And 12 regulations have been pending for more than a decade. The bureaucrats of the interim government are also walking on the path of keeping the matter pending. Suddenly, the law was amended and a provision for price adjustment (lower/higher) was added to the executive order in 2023. Since then, the quasi-judicial body has been practically unemployed. As BERC finalized the prices through public hearings, various inconsistencies of the utilities used to come to light. This created a kind of pressure on them, which was becoming a culture day by day. The Awami League government killed that process by strangling it. After the interim government took office, it abolished the clause for fixing electricity and gas prices through an executive order.
The gazette was published on August 27, abolishing the law for fixing electricity and gas prices through an executive order. The Bangladesh Energy Regulatory Commission (BERC) regained the sole power to fix electricity and gas prices at the consumer level. Then, through a notification, the issue of jet fuel was entrusted to BERC.
However, many people have expressed anger over the continued adjustment of diesel, kerosene, petrol and octane prices through an executive order.