The government has decided to reduce fuel oil price within a month as the downtrend in the international market continues, special assistant to the Chief Adviser Dr M Tamim told newsmen yesterday.

"I had meeting with the Finance and Planning adviser today. He has agreed to reduce the fuel oil price,' Tamim said.

The Adviser said the government will reduce fuel oil price provided that common people get the benefit of the tariff slash like reduction of public transport cost.

"Price of fuel oil will be reviewed in every three months. In addition, price will also be reviewed if there is 10 per cent upward or downward change in the international market," Tamim said.

He said the government had raised fuel oil price as it climbed to $147 per barrel. "During the price hike of fuel oil in June this year the government made commitment to reduce the price once the price falls in the global market. Now the price has come down to $90 per barrel and we are reducing the price," he explained.

Tamim did not elaborate the extent of price slash but said government will keep it in mind so that subsidy does not exceed Tk 5000 crore. "We have not given any specific proposal of the price cut. It will be decided considering various factors."

However, sources hinted that price cut may stand between 10 to 20 per cent.

Tamim informed newsmen that government will in no way give subsidy to octane and petrol.

On June 30 the government hiked fuel oil price in different ranges. It raised the prices of diesel and kerosene to Tk 55 from Tk 40, petrol to Tk 87 from Tk 65, and octane to Tk 90 from Tk 67.