BPC proposes jet fuel price increase to Tk112 per litre for local carriers
The Aviation Operators Association of Bangladesh (AOAB) calls for a downward adjustment of the Jet-A1 fuel tariff to ensure their survival
State-owned Bangladesh Petroleum Corporation (BPC) has proposed the price of Jet-A1 fuel at Tk112 per litre for local carriers and $0.74 for international carriers.
The proposal was presented to the Bangladesh Energy Regulatory Commission (BERC) during a hearing at TCB Bhaban today (23 March).
BERC Chairman Jalal Ahmed moderated the mass hearing which was attended by other commission members and various stakeholders.
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Despite opposition to the proposed increase in the Jet-A1 fuel tariff, ATM Selim, senior general manager of BPC, defended the move, stating that the tariff hike was necessary for the survival of state-owned organisations and to continue ongoing projects.
The Aviation Operators Association of Bangladesh (AOAB), representing local carriers, has called for a downward adjustment of the Jet-A1 fuel tariff to ensure their survival.
Mafuzur Rahman, managing director of NOVOAIR, expressed concern at the hearing, highlighting the financial struggles of airlines in Bangladesh.
He pointed out that while airlines are facing bankruptcy, the deposits at Padma Oil Company Limited are soaring.
"Airlines will have no choice but to halt domestic flights if the situation continues," Rahman warned, expressing his frustration.
BERC's technical committee, however recommended a reduction in the price of Jet A-1 fuel in Bangladesh, based on the Platts rate for February 2025.
The technical committee proposed reducing the price of duty-paid Jet A-1 by Tk5.49 per litre, setting the new price at Tk105.51 per litre for local carriers.
For bonded duty-free Jet A-1, the committee has proposed a reduction of $0.0399 per litre, bringing the price down to $0.6201 per litre.
