Dhaka: The government has decided to cut fuel prices in three phases from next week.

State minister for Power, Energy and Mineral resources Nasrul Hamid disclosed the information on Monday and told reporters that the price cut for diesel, petrol and octane would start from next week. A circular would be issued to this effect, he added.

Earlier, the government reduced the price of furnace oil used mainly for generation of electricity, by Tk 18 per litre. A notification announcing the cut —from Tk 60 to Tk 42 — was issued on 31 March.

According to the Power Development Board, Furnace Oil is used for generating 21.56% (of total) or 2,508MW of electricity, Diesel for generating 7.97% or 927MW and Gas for producing 61.62% or 7,169MW electricity.

Finance Minister AMA Muhith recently told newsmen that the government might cut fuel prices.