STAFF CORRESPONDENT

Electricity bills and industrial costs are set to increase after the Bangladesh Energy Regulatory Commission (BERC) raised furnace oil prices by 35 percent to Tk 94.69 per litre, citing global market volatility linked to the US-Israel war on Iran.

The latest adjustment came into effect from midnight and will remain in force until further notice.

The decision was made under Sections 34(4) and 34(6) of the Bangladesh Energy Regulatory Commission Act, 2003 following proposals from the Bangladesh Petroleum Corporation and the oil marketing companies Padma Oil, Meghna Petroleum and Jamuna Oil, according to BERC.

As no crude oil was imported in March, a committee formed on March 15 recommended the adjustment based on the average international Platts rate and the prevailing US dollar exchange rate.

The new rate was determined based on the free on board (FOB) price of refined furnace oil for March, the average Platts rate between March 1 and April 12 and the FOB price of crude oil imported in February, BERC said.

Furnace oil is a primary fuel source for many independent power plants (IPPs) and captive power units within factories. IPPs account for around one-third of the country’s electricity generation.