Experts have expressed concern that rising furnace oil prices could increase electricity bills and push up the cost of goods, adding further pressure to the cost of living.
They warn that higher fuel prices may raise production costs in both the power generation and industrial sectors, potentially fueling inflation in the economy.
Bangladesh cannot meet its full demand for furnace oil through domestic production.
To cover the shortfall for power plants and heavy industries, the Bangladesh Petroleum Corporation imports fuel, while the country’s only state-owned refinery in Chattogram processes imported crude oil into furnace oil.
Previously priced at 70.10 taka per litre, furnace oil saw a reduction of 16 taka in February, but the recent sharp increase within just two months is expected to raise generation costs at oil-based power plants.
Experts fear this will ultimately impact electricity tariffs, industrial production costs, and the prices of essential goods in the market.