Bangladesh to cut prices for gasoline, kerosene, diesel by up to 10%

DHAKA, April 24 (Reuters) -- Bangladesh will cut oil prices by up to 10%, a government minister said on Sunday, amid growing calls from business groups.

Global oil prices, which had tumbled since 2014, are picking up again amid signs a persistent supply glut may be easing. However, they remain way below the highs of 2009.

Bangladesh last raised oil prices in 2013 when the price of oil per barrel jumped to $122, compared with $45 on Friday. It has kept prices unchanged over the last two years to help state-owned Bangladesh Petroleum Corporation to offset its previous losses.

Prices of petrol and 95-octane gasoline have now been reduced by 10 taka/liter and diesel and kerosene by 3 taka/liter, said Nasrul Hamid, junior minister for power, energy and mineral resources.

After the reduction, a liter of petrol will cost at 86 taka ($1.1) and 95-octane gasoline at 89 taka, while a liter of diesel and kerosene will cost at 65 taka.

The new rates will be effective from midnight local time, Hamid said.

Bangladesh's demand for oil is growing sharply because a shortfall of natural gas forced it to turn to costly oil-fired power plants to resolve its crippling electricity shortages.

Last Friday Brent futures LCOc1 ended up 1.3% at $45.11/bbl, while US West Texas Intermediate CLc1 crude settled up 1.3% at $43.73/bbl.