Jet fuel price goes up again

Due to the increase in fuel prices in the international market in the wake of ongoing war situation in the Middle East, the price of Jet A-1 (aviation fuel) has been revised again in the country. This new price will be applicable to both domestic and international flights.

The Bangladesh Energy Regulatory Commission (BERC) announced this decision through a press release on Tuesday (April 7). The announced new price will be effective from 12 midnight today.

According to the new determination, the price of jet fuel per liter including duty and VAT for domestic flights has been fixed at Tk27. 8. On the other hand, for international flights (domestic and foreign airlines), the price of fuel per liter excluding duty and VAT has been fixed at 1.4836 US dollars.

Earlier on March 24, the price of jet fuel went up by about 80 percent on domestic routes and about 79 percent on international routes in one go. Even before that, in a notification issued on March 8, it was raised from Tk9.12 per liter to Tk112.41 on domestic routes and from 0.62 dollar to 0.7384 dollar on international routes.

BERC said that fuel oil prices have increased in the global market due to the impact of the war situation in the Middle East. Based on the application of Bangladesh Petroleum Corporation (BPC) and Padma Oil Company Limited, the new price has been determined by analyzing the international market's plats rate, dollar exchange rate, transportation costs and LC settlement issues from March 23 to April 4.

This decision has been taken based on the recommendations of the relevant committee and public hearings as per the law of the commission. The full order will be published on the commission's website soon.

The increasing fuel prices are expected to increase the cost of operating flights on both domestic and international routes, which could also lead to an increase in airfares for passengers.