Fuel prices in Bangladesh jump 67 percent

DHAKA, Bangladesh (AP) -- Bangladesh's government raised fuel prices by up to 67 percent Tuesday, adding to the cost of living for Bangladeshis, most of whom live on less than $1 a day.

Bangladesh imports crude oil and petroleum products, which are then sold at subsidized rates. But surging crude oil prices have strained government finances.

"We took the decision to raise fuel prices, finding no other way to reduce revenue losses," M. Tamim, an aide to Bangladesh's interim government, said.

Under the new rates, which started immediately, a liter of premium grade gasoline will be raised 34 percent to 90 takas ($3.42 per gallon). Diesel and kerosene prices were raised 37.5 percent to 55 takas ($3.04 a gallon).

Liquefied petroleum gas -- mostly used for cooking in areas without piped gas supply -- saw the largest hike of 66.67 per cent, with a cylinder now costing 1,000 takas ($14.81), instead of 600 takas ($8.89).

Fuel prices were last raised in April 2007, when a barrel of crude oil cost about $60 a barrel on the international market. Recently, crude has spiked above $140 a barrel.

Bangladesh has already seen increases in transport, commodity and food prices in recent months.

The price of compressed natural gas, mostly used by vehicles, was

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