Jet fuel price soars in Bangladesh after sudden policy reversal

Dhaka: Bangladesh has sharply increased jet fuel prices after briefly putting the decision on hold, with the new rate for domestic aviation fuel now set at BDT 202.29 per liter, up from BDT 112.41. The revised pricing took effect from midnight.

The move comes shortly after the Bangladesh Energy Regulatory Commission (BERC) had suspended an earlier hike following strong objections from industry stakeholders and concerns over geopolitical tensions in the Middle East.

With the new adjustment, the price of Jet A-1 fuel for domestic airlines has risen by nearly 80 percent, significantly increasing operational costs. For international flights, the duty-free fuel rate has also been raised—from USD 0.7684 to USD 1.3216 per liter.

According to officials, the updated pricing was determined based on average Platts market rates between March 5 and March 22, along with changes in exchange rates and added premiums. Diesel prices, however, remain unchanged.

The development follows a turbulent week in fuel policy, during which BERC initially announced a 73 percent increase before quickly withdrawing it amid fears of global supply disruptions tied to instability in the Middle East.

As fuel costs make up a large share of airline expenses, the sharp rise is expected to impact ticket prices, route operations, and the overall stability of the aviation industry.

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