Petroleum Prices in Bangladesh : A Need for Regular and Appropriate Adjustments
Under-pricing of diesel and kerosene continues to cause major financial problems for Bangladesh Petroleum Corporation (BPC), which is losing over Tk 2 billion monthly. Global forecasts suggest that oil prices will continue to be over $US 50 per bar...
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| Format: | Energy Study |
| Language: | English en_US |
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Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2007/02/16259427/petroleum-prices-bangladesh-need-regular-appropriate-adjustments http://hdl.handle.net/10986/8054 |
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okr-10986-80542021-04-23T14:02:36Z Petroleum Prices in Bangladesh : A Need for Regular and Appropriate Adjustments World Bank ADMINISTERED PRICE ADMINISTERED PRICES AVAILABILITY BALANCE BARREL BOTTOM LINE CAPITAL MARKETS COMMON CARRIERS CONSUMER PRICES CONSUMPTION OF PETROLEUM CONTINGENT LIABILITIES CRUDE OIL CRUDE OIL PRICE CRUDE OIL PRICES DEMAND FOR PETROLEUM PRODUCTS DIESEL DOMESTIC PETROLEUM DOWNSTREAM OIL EFFECTS OF FUEL PRICE ELECTRICITY ENERGY PRICING EXPENDITURE EXPENDITURES EXPENDITURES ON FUEL EXTERNALITIES FINANCIAL BURDEN FOREIGN EXCHANGE FREIGHT FUEL FUEL PRICE INCREASES FUEL PRICES GAS GASOLINE GASOLINE PRICES HIGHER OIL PRICES HOUSEHOLD EXPENDITURES INFLATION INTERNATIONAL CRUDE OIL KEROSENE KEROSENE USE MARKET PRICE MARKETING MINERAL MINERAL RESOURCES MONOPOLY OIL OIL COMPANIES OIL IMPORTS OIL MARKETING OIL MARKETING COMPANIES OIL PRICE OIL PRICES OIL PRODUCTS PETROL PETROLEUM PETROLEUM CORPORATION PETROLEUM IMPORTS PETROLEUM MARKETS PETROLEUM PRICE PETROLEUM PRICES PETROLEUM PRODUCT PRICES PETROLEUM SECTOR POLLUTION POWER PRICE ADJUSTMENT PRICE ADJUSTMENTS PRICE CHANGE PRICE DIFFERENTIAL PRICE FOR OIL PRICE INCREASE PRICE INCREASES PRICE OF DIESEL PRICE OF GASOLINE PRICE REGULATION PRICE SUBSIDY PRICING MECHANISM PRICING POLICIES PRICING POLICY PRIVATE SECTOR PUBLIC TRANSPORT REFINERY REFINING RETAIL RETAIL PRICE RETAIL PRICES ROUTES SAFETY SAFETY STANDARDS STOCK LEVELS STORAGE FACILITIES SURPLUS TAX TAX PAYMENTS TRANSPORT COSTS TRANSPORTATION TRUE WINDFALL PROFITS Under-pricing of diesel and kerosene continues to cause major financial problems for Bangladesh Petroleum Corporation (BPC), which is losing over Tk 2 billion monthly. Global forecasts suggest that oil prices will continue to be over $US 50 per barrel for the next couple of years. Bangladesh's Household Income and Expenditure Survey data for 2005 indicate that both diesel and kerosene form a very small part of the budget of the poor. One option, therefore, is to raise the price of diesel and kerosene from current Tk 33 to 41 per liter and make BPC breakeven on its trading costs. BPC's trading cost is roughly 70 percent of its total current costs; the latter includes an ever increasing interest bill, currently at Tk 4.7 billion. If the one step increase is considered difficult, a second option would be to phase the increase over a six-month period with each increase of Tk 4 per liter, possibly in sync with the 'boro' rice planting season. A major communication campaign should be launched to inform the public the rationale of the price increase. Future adjustments should be based on a formula that automatically adjusts prices-both upwards and downwards, on a regular basis. 2012-06-14T18:28:59Z 2012-06-14T18:28:59Z 2007-02 http://documents.worldbank.org/curated/en/2007/02/16259427/petroleum-prices-bangladesh-need-regular-appropriate-adjustments http://hdl.handle.net/10986/8054 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Washington, DC Economic & Sector Work :: Energy Study Economic & Sector Work South Asia Bangladesh |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ADMINISTERED PRICE ADMINISTERED PRICES AVAILABILITY BALANCE BARREL BOTTOM LINE CAPITAL MARKETS COMMON CARRIERS CONSUMER PRICES CONSUMPTION OF PETROLEUM CONTINGENT LIABILITIES CRUDE OIL CRUDE OIL PRICE CRUDE OIL PRICES DEMAND FOR PETROLEUM PRODUCTS DIESEL DOMESTIC PETROLEUM DOWNSTREAM OIL EFFECTS OF FUEL PRICE ELECTRICITY ENERGY PRICING EXPENDITURE EXPENDITURES EXPENDITURES ON FUEL EXTERNALITIES FINANCIAL BURDEN FOREIGN EXCHANGE FREIGHT FUEL FUEL PRICE INCREASES FUEL PRICES GAS GASOLINE GASOLINE PRICES HIGHER OIL PRICES HOUSEHOLD EXPENDITURES INFLATION INTERNATIONAL CRUDE OIL KEROSENE KEROSENE USE MARKET PRICE MARKETING MINERAL MINERAL RESOURCES MONOPOLY OIL OIL COMPANIES OIL IMPORTS OIL MARKETING OIL MARKETING COMPANIES OIL PRICE OIL PRICES OIL PRODUCTS PETROL PETROLEUM PETROLEUM CORPORATION PETROLEUM IMPORTS PETROLEUM MARKETS PETROLEUM PRICE PETROLEUM PRICES PETROLEUM PRODUCT PRICES PETROLEUM SECTOR POLLUTION POWER PRICE ADJUSTMENT PRICE ADJUSTMENTS PRICE CHANGE PRICE DIFFERENTIAL PRICE FOR OIL PRICE INCREASE PRICE INCREASES PRICE OF DIESEL PRICE OF GASOLINE PRICE REGULATION PRICE SUBSIDY PRICING MECHANISM PRICING POLICIES PRICING POLICY PRIVATE SECTOR PUBLIC TRANSPORT REFINERY REFINING RETAIL RETAIL PRICE RETAIL PRICES ROUTES SAFETY SAFETY STANDARDS STOCK LEVELS STORAGE FACILITIES SURPLUS TAX TAX PAYMENTS TRANSPORT COSTS TRANSPORTATION TRUE WINDFALL PROFITS |
| spellingShingle |
ADMINISTERED PRICE ADMINISTERED PRICES AVAILABILITY BALANCE BARREL BOTTOM LINE CAPITAL MARKETS COMMON CARRIERS CONSUMER PRICES CONSUMPTION OF PETROLEUM CONTINGENT LIABILITIES CRUDE OIL CRUDE OIL PRICE CRUDE OIL PRICES DEMAND FOR PETROLEUM PRODUCTS DIESEL DOMESTIC PETROLEUM DOWNSTREAM OIL EFFECTS OF FUEL PRICE ELECTRICITY ENERGY PRICING EXPENDITURE EXPENDITURES EXPENDITURES ON FUEL EXTERNALITIES FINANCIAL BURDEN FOREIGN EXCHANGE FREIGHT FUEL FUEL PRICE INCREASES FUEL PRICES GAS GASOLINE GASOLINE PRICES HIGHER OIL PRICES HOUSEHOLD EXPENDITURES INFLATION INTERNATIONAL CRUDE OIL KEROSENE KEROSENE USE MARKET PRICE MARKETING MINERAL MINERAL RESOURCES MONOPOLY OIL OIL COMPANIES OIL IMPORTS OIL MARKETING OIL MARKETING COMPANIES OIL PRICE OIL PRICES OIL PRODUCTS PETROL PETROLEUM PETROLEUM CORPORATION PETROLEUM IMPORTS PETROLEUM MARKETS PETROLEUM PRICE PETROLEUM PRICES PETROLEUM PRODUCT PRICES PETROLEUM SECTOR POLLUTION POWER PRICE ADJUSTMENT PRICE ADJUSTMENTS PRICE CHANGE PRICE DIFFERENTIAL PRICE FOR OIL PRICE INCREASE PRICE INCREASES PRICE OF DIESEL PRICE OF GASOLINE PRICE REGULATION PRICE SUBSIDY PRICING MECHANISM PRICING POLICIES PRICING POLICY PRIVATE SECTOR PUBLIC TRANSPORT REFINERY REFINING RETAIL RETAIL PRICE RETAIL PRICES ROUTES SAFETY SAFETY STANDARDS STOCK LEVELS STORAGE FACILITIES SURPLUS TAX TAX PAYMENTS TRANSPORT COSTS TRANSPORTATION TRUE WINDFALL PROFITS World Bank Petroleum Prices in Bangladesh : A Need for Regular and Appropriate Adjustments |
| geographic_facet |
South Asia Bangladesh |
| description |
Under-pricing of diesel and kerosene
continues to cause major financial problems for Bangladesh
Petroleum Corporation (BPC), which is losing over Tk 2
billion monthly. Global forecasts suggest that oil prices
will continue to be over $US 50 per barrel for the next
couple of years. Bangladesh's Household Income and
Expenditure Survey data for 2005 indicate that both diesel
and kerosene form a very small part of the budget of the
poor. One option, therefore, is to raise the price of diesel
and kerosene from current Tk 33 to 41 per liter and make BPC
breakeven on its trading costs. BPC's trading cost is
roughly 70 percent of its total current costs; the latter
includes an ever increasing interest bill, currently at Tk
4.7 billion. If the one step increase is considered
difficult, a second option would be to phase the increase
over a six-month period with each increase of Tk 4 per
liter, possibly in sync with the 'boro' rice
planting season. A major communication campaign should be
launched to inform the public the rationale of the price
increase. Future adjustments should be based on a formula
that automatically adjusts prices-both upwards and
downwards, on a regular basis. |
| format |
Economic & Sector Work :: Energy Study |
| author |
World Bank |
| author_facet |
World Bank |
| author_sort |
World Bank |
| title |
Petroleum Prices in Bangladesh : A Need for Regular and Appropriate Adjustments |
| title_short |
Petroleum Prices in Bangladesh : A Need for Regular and Appropriate Adjustments |
| title_full |
Petroleum Prices in Bangladesh : A Need for Regular and Appropriate Adjustments |
| title_fullStr |
Petroleum Prices in Bangladesh : A Need for Regular and Appropriate Adjustments |
| title_full_unstemmed |
Petroleum Prices in Bangladesh : A Need for Regular and Appropriate Adjustments |
| title_sort |
petroleum prices in bangladesh : a need for regular and appropriate adjustments |
| publisher |
Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2007/02/16259427/petroleum-prices-bangladesh-need-regular-appropriate-adjustments http://hdl.handle.net/10986/8054 |
| _version_ |
1764403758099333120 |