Dhaka, Bangladesh (BBN)– The government on Thursday raised furnace oil price by five Bangladesh Taka (BDT) per litre to BDT 40 aiming to reduce losses of state-owned oil marketing firm, officials said.

The new rate was made effective from Thursday, a Bangladesh Petroleum Corporation (BPC) senior official said.

This is the second time in ten weeks the price of furnace oil, used as an alternative to gas and diesel in factories, has been hiked. The price of furnace oil was raised by BDT 9.0 per litre on January 25 this year.

The country’s furnace oil import will more than double to two million tons in 2011 calendar year, thanks largely to the ballooning gas crisis.

About 80 per cent of the import will be consumed by the newly set-up and under-construction power plants, the BPC officials added.

BBN/SSR/AD-08Apr11-1:45 am (BST)