Jet fuel prices jump more than 21pc in Bangladesh

Dhaka: Jet fuel prices in Bangladesh have increased by more than 21 percent for both domestic and international flights, putting additional pressure on airlines and potentially pushing up airfares.

The Bangladesh Energy Regulatory Commission (BERC) raised the price of Jet A-1 for domestic operations to BDT 159.52 per liter, compared with the previous BDT 130.99. For international flights, the duty- and VAT-free price has risen to USD 1.0358 per liter from USD 0.8556.

The revised rates, announced in a BERC order, took effect on August 10.

The regulator adjusted the prices following a public hearing held under the Bangladesh Energy Regulatory Commission Act, 2003. The calculation was based on Jet A-1 prices under the Platts benchmark between July 5 and August 4, along with the US dollar exchange rate used for Bangladesh Petroleum Corporation’s letter-of-credit settlements.

Airline operators warned that the higher fuel costs could increase operating expenses and eventually affect passengers.