Jet fuel price hiked by 80 percent, highest in South Asia

Bangladesh Energy Regulatory Commission (BERC) has decided to increase jet fuel prices by nearly 80 percent. The new rates will come into effect from March 25.

BERC announced the new prices on Tuesday, March 24.

According to BERC sources, an emergency meeting was held today to raise fuel prices. Senior officials of Padma Oil, Bangladesh Petroleum Corporation (BPC) and BERC were present.

For domestic flights, jet fuel prices have been increased from Tk 112.41 per litre to Tk 202.29 per litre, an increase of Tk 89.88 or 80 percent.

For international flights, the price has been raised from $0.7384 per litre to $1.3216 per litre, an increase of nearly 79 per cent.

Stakeholders have termed the sudden price hike irrational and abnormal. They said BERC's decision is much higher compared to other South Asian countries. This will put airlines, travel agencies and passengers under severe pressure. Domestic airlines and related businesses may face closure.

The newly fixed jet fuel price for international routes in Bangladesh is abnormally higher than regional and global markets. According to latest data from respective airports, jet fuel prices are $0.62 per litre in Kolkata, $0.603 in Muscat, $0.587 in Dubai, $0.584 in Doha, $1.098 in Bangkok, $0.586 in Singapore, and $0.581 in Jeddah – all significantly lower than Bangladesh.

Aviation Operators Association of Bangladesh (AOAB) Secretary General and Novoair Managing Director Mofizur Rahman termed the price hike "irrational" and warned of serious operational consequences.

He said if this situation continues, airlines may have to shut down operations. The concerned ministry has already stated that there is no fuel shortage in the country. Nearly 25 oil-laden ships have arrived in the last 22 days, and the oil was purchased at predetermined prices. Meanwhile, global oil prices have recently declined. Against this backdrop, raising jet fuel prices so drastically based on fears of future price increases is not justified. They have already submitted a dissent note to concerned authorities.