A GAZETTE

Registered No. A-1

Bangladesh (Monogram) GAZETTE

Extra Ordinary Number

Issued by the Authority

 

Tuesday,  September 23, 2003

 

Govt. of the People’s Republic of Bangladesh

Ministry of Power, Energy and Mineral Resources

Energy and Mineral Resources Division

NOTIFICATION

Dhaka, 23 Sept. 2003/08 Aswin, 1410

No. EPMRD (Operation-1/6/2003(Part) 506- issued following guidelines in the Memo. regarding price refixation  of natural gas and petroleum products namely:

Guidelines refixation of price of natural gas and petroleum products.

The sector is the role of Energy Sector that is natural gas and petroleum products is important for the economic development and gas transmission and distribution and  to bring more skillness and dynamism to reduce wastage, in the activities of this sector and to ensure the price of natural gas and petroleum products to the customer/general consumers as competition price, this initiative of price fixation of this market related products have been taken.  If this reasonable profit are ensured through specific price fixation.  On the utility basis regarding natural gas against investment, the investors will be more interested in the establishment gas based industry and  it will be possible to viable this sector economically. On the other hand in consistent with the international market price if the price of petroleum products fixed at local price then private investment in this sector will be encouraged. As a result the general consumers will be able to purchase the standard petroleum products at competitive prices.

2. As part of reform of Energy Sector according to National Energy Policy (Formula) in 1996 and by considering production cost  regarding the price fixation of natural gas petroleum products have been recommended at competitive prices. For fulfilling this purpose price fixation formula of petroleum and natural gas have been formulated on the basis of fixed formula within the fixed time. 

3. Price fixation formula of natural gas:

Sell price of gas at customer phase:

Purchase of gas/production price +distribution and transmission cost + supplementary duty + VAT.

(1st)                                     Gas purchase/production price will be determined with future investment by consisting with the value of Singapore HSPO according to guidelines regarding the price fixation of produced gas by International Oil Company.

(2nd)                                   Supplementary duty will be determined on the basis of Volumetric Measurement of marketed gas.

(3rd)                                     The gas price will be reviewed at every month by following proper formula and after six months it will be refixed. But at the monthly review if the price of next month increase/decrease more than 10% than the previous month then it will be refixed at before fixed time.

(4th)                                     If necessity of gas supply arise at the reduced price to any special customer class then Govt. could give it to that customers by arranging it in the Budget.

4.                                         Price fixation formula of energy oil:

Price of petroleum products at customer level = Import Parity Price + Infrastructure and stock fee + transport expenditure in the country + oil marketing margin of the company + Dealers margin + Duty+VAT.

(1st)                                     On the basis of price average of international market of petroleum products import parity price will be determined at every months Platts Oilgram.

(2nd)                                     For stock of energy oil at Depos and original installation infrastructure  and stock fee will be given at the highest rate 1.5% of Depos price of oil.

(3rd)                                     To supply oil at equivalent price to the whole country as average transportation expenditure it is fixed at the highest price at Taka 0.30 per liter.

(4th)                                     Oil marketing company will get at the margin of 3.5%.  of Depo price.

(5th)                                      The Dealers will get highest 25% commission of the Depo price.

(6th)                                      Duty, tax and VAT will payable at the rate fixed by the Govt.

(7th)                                     Price of petroleum products will be reviewed at every month by following formula and after six months it will be refixed. But during monthly review if the price of next month  increase/decrease more than 5% than previous month then it will be determined within the fixed time.

Md. Rafiqul Islam

Joint Secretary (Admin./Operation)

 

Printed by Sheikh Md. Mobarak Hossain (Deputy Secretary), Deputy Controller, Bangladesh Government Press, Dhaka.

Published by Md. Amin Joberi Alam, Deputy Controller, Bangladesh Form & Publication Office, Tejgaon, Dhaka.
[Presented in the National Parliament]

Presented for amendment of Bangladesh Regulatory Commission Act, 2003 (Rule No. 13 of 2003)