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Fuel oil, bitumen prices may rise as crude oil price hits 7-year high

Staff Correspondent | banglanews24.com
Update: 2022-01-19 14:43:11
Fuel oil, bitumen prices may rise as crude oil price hits 7-year high

Brent crude price in the international market has hit record high at $88 per barrel in the last seven years affecting the production of related products and sparking a great concern.

The international market has also seen soaring price of unrefined oil, sources said.

Price of crude oil has jumped by 23 percent in last one month, adding that bitumen may sell in the local market at Tk 1,000-1,200 higher than now per barrel.  The soaring crude price may result in hike in the fuel price.

The price of Brent crude increased by 5.12 percent to $81.76 per barrel in the first week of January, 2022 and by 5.77 percent to $86.47 in the second week.

According to sources, crude oil was sold at $71.57 a month ago while at $88.04 yesterday (Tuesday).

West Texas Intermediate (WTI) crude price has hiked by 1.5 percent to $85 within one day.

It is mentionable that the total annual demand of bitumen in the country is at least 5.5 lakh tonnes.

However, there has a capacity to produce only 60,000-70,000 tonnes of bitumen at government level. To meet the demand, various companies were importing low quality adulterated bitumen from abroad. The roads made of such low quality bitumen get partly damaged within six months.

Dilapidated roads increase the suffering of the commuters and reduce the durability of the vehicles. The concerned authorities and experts said that huge amount of state money was wasted in repairing and maintaining the damaged roads.

Against the backdrop, local entrepreneurs have established plants in the country to produce high quality bitumen.

The concern has risen as the prices of crude oil hiked alarmingly over the last one year. The price of Brent crude oil hit $88 per barrel which was $55.90 a year back. The rise in the price of Brent crude oil, which is the main ingredient for producing Bitumen, will affect the bitumen market. It may also create negative impact on the price of diesel, petrol and other fuel oils.

BDST: 1442 HRS, JAN 19, 2022
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