Bangladesh hikes jet fuel price by 12.26%, third increase in a month
Earlier, on 24 March, BERC increased jet fuel prices by around 80% for domestic routes and nearly 79% for international routes in a single adjustment.
The Bangladesh Energy Regulatory Commission (BERC) has once again raised the price of jet fuel used in aircraft operations, marking the third increase in less than a month.
The new rates were announced today (7 April) and is set to take effect from midnight tonight, reads a BERC notification.
Under the latest revision, the price of jet fuel for domestic flights has been increased to Tk227.08 per litre from Tk202.29 per litre, a rise of 12.26%.
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For international flights, the fuel price has been raised to $1.4806 per litre from $1.3216 per litre, exempt from duties and VAT.
Earlier, on 24 March, BERC increased jet fuel prices by around 80% for domestic routes and nearly 79% for international routes in a single adjustment.
Prior to that, on 8 March, the price for domestic routes was revised from Tk95.12 per litre to Tk112.41, while international prices were raised from $0.62 to $0.7384 per litre.
Reacting to the latest hike, Novoair Managing Director Mofizur Rahman told The Business Standard that the 12% increase may appear modest in isolation, but the cumulative rise since February has been significant.
"Jet fuel prices for domestic routes were around Tk95 per litre in early February, later surging to over Tk200 – an increase of more than 100% in a short period. With the latest adjustment, the overall rise now stands at roughly 115%-116%. In that context, a 12% hike alone may not seem very significant, but the cumulative impact is substantial," he said.
He added that rising fuel costs are compounded by higher taxes. "In February, the tax component was around Tk18 per litre. Now it has increased to over Tk40 due to the higher base price," he said, noting the added pressure on airlines.
Referring to international practices, he said several countries have cut fuel taxes to cushion the impact of rising prices.
"India has significantly reduced fuel taxes, while Australia has cut them by around 50%. Such measures help airlines manage costs," he noted.
He stressed that without similar adjustments in Bangladesh, the rising cost structure could become unsustainable and would continue to push up airfares.
