Ctg Port berth operators seek fuel surcharge as diesel price rises 69% since 2022

Container berth operators at Chittagong Port have sought an adjustment of their contract rates with the latest increase in diesel prices, saying the cost of fuel has risen 69% since they submitted bids for their current contracts in January 2022.

The Bangladesh Ship Handling and Berth Operators Association made the demand in a letter to Chittagong Port Authority Chairman Rear Admiral S M Moniruzzaman today (21 September), saying the latest Tk20-per-litre increase from yesterday (20 September) has pushed diesel prices to Tk135 a litre from Tk80 at the time of tender submission.

The operators said the repeated fuel price hikes have sharply increased their operating costs, making it difficult for them to continue container handling operations under the existing contract rates.

"Our member berth operators are facing an abnormal increase in fuel costs, and it is no longer possible for them to manage the financial pressure and continue berth operations," said the association President Fazle Ekram Chowdhury in the letter.

The association said the operators had calculated their bids based on prevailing fuel and commodity prices when Chittagong Port Authority invited tenders under the Open Tendering Method (OTM) on 19 January 2022. At that time, diesel was priced at Tk80 per litre.

However, diesel prices increased by Tk34 per litre on 5 August 2022, according to the association. The operators subsequently sought an adjustment of their contract rates with the higher fuel costs, but said no action was taken on their request.

Diesel prices later rose by another Tk15 per litre, taking the cumulative increase from the tender-stage price to Tk49 per litre.

The latest Tk20 increase has now pushed the price to Tk135 per litre, representing a 68.75%, or nearly 69%, rise from the Tk80 price prevailing when the contracts were tendered.

The association said container handling operations are heavily dependent on transportation and fuel, making the sharp rise in diesel prices a direct burden on berth operators.

It also said fuel price increases had already been adjusted across various sectors and urged the port authority to take immediate steps to revise container handling rates in line with the higher fuel costs.

The letter was also sent to the Chittagong Port Authority's traffic director for information.

The demand comes as operators at Chittagong Port have been facing pressure from rising operating costs and changes in cargo allocation under port handling contracts.

The association's latest request is specifically focused on adjusting existing container handling contract rates to reflect the increase in fuel prices.