Dhaka - The interim government in Bangladesh raised fuel prices Tuesday by a whopping 33 per cent to match global oil price hikes, officials said.

An official statement said that the prices of petrol had been increased to reduce mounting losses by the state-run Bangladesh Petroleum Corporation which has the monopoly on importing and marketing petroleum products in the country.

Prices for diesel and kerosene rose sharply by 27 per cent as the government decided to reduce subsidies on all petroleum products, including furnace oil and gas sold in cylinders.

The hike was also necessary to deter smuggling of oil to bordering India because of higher fuel prices in the neighbouring country, the statement said. (dpa)