Bangladesh spends record $10.63b on fuel imports in FY26

Highlights:

• Bangladesh's fuel import bill hit a record $10.63 billion
• Fuel accounted for over 14% of total merchandise imports
• Fuel imports surged 107%, far exceeding overall import growth
• Higher prices and domestic demand drove the increase
• Refined fuel prices rose faster than crude oil prices
• Experts warn elevated oil prices could further increase import costs

Bangladesh spent a record $10.63 billion on crude oil and petroleum products in fiscal 2025-26, accounting for more than 14% of the country's total $75.24 billion merchandise import bill, according to Bangladesh Bank data.

Fuel imports more than doubled from $5.14 billion a year earlier, rising 107% in a single year. The increase far outpaced overall import growth, with the total import bill rising 10.1% to $75.24 billion from $68.35 billion in FY25.

Inforgraph: TBS

In effect, Bangladesh spent about $1 in every $7 of its merchandise import bill on fuel. At the current exchange rate, the fuel import bill was equivalent to around Tk1.32 lakh crore.

The $10.63 billion bill also surpassed the previous record of $8.99 billion set in FY21, when the global economy was recovering from the Covid-19 pandemic and a sharp rebound in energy demand drove up oil prices.

Energy expert M Tamim said the increase was mainly driven by higher demand and prices. He warned that the fuel import bill could rise further if global oil prices remain elevated.

Fuel drives most of the increase in import payments

The rise in petroleum imports stands out from the performance of other major imports.

Intermediate goods remained the largest broad import category, rising 15.2%. Capital goods imports grew 7.1%, while food grain imports increased 11.7%. Consumer goods imports, however, fell 11.4%.

Among major industrial inputs, RMG-related imports declined 4%, while imports of iron, steel and other base metals fell 4.6%. Plastics and rubber imports also dropped 2%.

Some categories recorded significant increases. Fertiliser imports rose 42%, oilseed imports 34.4% and chemical imports 8.1%. Pharmaceutical imports also increased 13.8%. Capital machinery imports grew 13.8%, while other capital goods imports rose 4.4%.

Both price and demand push up fuel bill

The record fuel bill was driven by higher international prices and rising domestic demand.

During July-March of FY26, Bangladesh imported 5.74 million tonnes of fuel, up from 5 million tonnes a year earlier. The full-year import volume has not yet been disclosed.

The imports included diesel, crude oil, furnace oil, petrol, octane, jet fuel and base oil. The BPC estimates domestic fuel demand at around 7.4 million tonnes in FY26.

Crude oil import costs rose 92% year-on-year to $1.20 billion, while spending on petroleum, oil and lubricants products jumped 109.1% to $9.44 billion.

Bangladesh is heavily dependent on refined fuel. In FY25, it imported 6.22 million tonnes of fuel, with refined petroleum products accounting for around 76% and crude oil 24%.

Refined fuel prices rise faster than crude

Fuel bill was also pushed up by a sharper rise in refined petroleum prices than in crude oil. 

The average international price of refined products such as gasoil, diesel and jet fuel rose 17.6% to $835 per tonne in FY26. By comparison, crude oil prices rose 10.4%.

The difference matters because most of Bangladesh's fuel imports are refined products. Their prices are linked to crude benchmarks but also include refining margins, which can widen when supply, refining capacity or demand tightens.

Global oil market volatility adds to pressure

Oil prices have been volatile since the Covid-19 pandemic, rising sharply as the global economy reopened and again after Russia's invasion of Ukraine in February 2022.

The FY26 market was particularly volatile. Crude prices fell to around $60 a barrel before Middle East tensions pushed Brent above $119 in March amid supply disruption fears.

Prices jumped again after the Middle East conflict began, crossing $120 before falling below $100. On Monday, Brent traded at $86.72 a barrel and West Texas Intermediate at $81.

Fuel supply remains a concern

The record import bill comes amid recent fuel shortages, with long queues forming at petrol pumps as consumers rushed to secure supplies.

Tamim said the disruption was largely driven by panic buying, as consumers feared shortages and bought more than they needed.

He recommended maintaining at least 1.5 months' fuel stock and closely monitoring global developments to prevent similar disruptions.

Bangladesh currently sells diesel at Tk115 a litre, octane at Tk145, petrol at Tk140 and kerosene at Tk135. The government raised octane, petrol and kerosene prices by Tk5 a litre in June but kept diesel unchanged. Prices remained unchanged in July and August.

Comments from the BPC and the energy ministry could not be obtained.