The government on Thursday set the automated retail prices of petroleum fuels for the month of March with effect from Friday (March 8).

As per a gazette notification, issued on March 7, the new price of diesel and kerosene was set at Tk 108.25 per litre lowering by Tk 0.75 instead of existing Tk 109, while the price of octane was set at Tk 126 by cutting Tk 4 from Tk 130 per litre.

The price of petrol was fixed at Tk 122 by lowering Tk 3 from Tk 125 per litre.

Issuing the gazette notification in this regard, the Ministry of Power, Energy and Mineral Resources in a clarification said that the new price has been in line with the prices of the petroleum on the international market.

About the octane and petrol prices the clarification said that these two items are mainly used by the private car owners. These two are deemed to be luxury items. So, the prices of the two items always are higher than of diesel’s.

It also said that from now on the petroleum fuel prices will be adjusted every month under an automated formula and guideline.

It mentioned that despite the fuel oil has been adjusted in the country, diesel is currently being sold at Rs 92.76 or Tk 133.57 (1 Rupee = 1.44 Taka) and petrol at Rs 106.03 or Tk 152.68 per litre in Kolkata, India, which is by Tk 24.57 and Tk 27.68 respectively.

Earlier, the government on March 1 issued a “Fuel Pricing Guidelines” through a gazette notification to set an automated price for the petroleum fuels across the country.

It said the local prices will go up and down in line with the international price and every month such prices will be announced by the government for one-month tenure.

The Fuel Pricing Guidelines, however, giving an example for its effectiveness said that if it is planned to make effective from April 1, the prices of fuels of one month in the international market from February 21 to March 20 has to be taken into consideration to set an average price and then set the price for April.

But the prices of fuels were set from March 8.