Jet fuel price down by Tk17.43 per litre
BERC said the new price will be in effect from 12am tonight
The Bangladesh Energy Regulatory Commission (Berc) has reduced the jet fuel Jet A-1 price for domestic and international airlines, effective from tomorrow (14 May).
For domestic carriers, the price of Jet A-1 fuel has been lowered by Tk17.43 per litre — dropping from Tk111 to Tk93.57. For international airlines, the price has been cut by $0.1434 per litre, reducing the rate from $0.7500 to $0.6066.
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Alongside the fuel price adjustment, the Bangladesh Petroleum Corporation (BPC) has revised its storage and sale charge to Tk4.04 per litre.
And Padma Oil Company, the exclusive distributor of jet fuel to airlines, also readjusted the sale charge to Tk0.88 per litre of fuel.
The latest revisions follow a proposal submitted by BPC on 18 February to readjust jet fuel prices. BERC subsequently held a public hearing on 23 March to evaluate the proposal.
Jet fuel is usually imported by Bangladesh Petroleum Corporation, with Padma Oil handling distribution. Recently, private firm Pertex Petroleum entered the market as the country's first local jet fuel producer. The company is expected to produce 2,800 barrels of jet fuel per day.
According to the airlines, the country has a daily demand of 9,000 barrels of jet fuel.
Aviation operators said around 40%-50% of the cost of airlines are related to Jet fuel.
Commenting on the impact of the price cut, Imran Asif, CEO of Air Astra, told TBS, "The operational cost would reduce, consequently the operational losses would be lesser too. But sustainability of the industry would depend on much more than fuel - on reduction of surcharges, ground handling costs, dollar rates, to name a few."
