Jet fuel price raised by 21%

The Bangladesh Energy Regulatory Commission (BERC) has raised the prices of jet fuel for domestic and international airlines by over 21 percent, which is expected to have an impact on travel costs in the days to come.

The price of each litre of Jet A-1 has been increased to Tk 159.52, up from Tk 130.99 for Bangladeshi buyers on domestic routes.

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For international flights, the duty- and value-added tax-free price for domestic and foreign airlines rose to $1.0358 per litre from $0.8556.

The BERC announced the new rates through an order, which came into effect last night.

Experts say the latest increase in jet fuel prices could raise airline operating costs and may eventually have an impact on fares on domestic and international routes.

Yesterday, the BERC held a public hearing under the Bangladesh Energy Regulatory Commission Act, 2003, in view of a proposal from Bangladesh Petroleum Corporation and Padma Oil Company Limited.

Considering the price based on the Platts rate of Jet A-1 from July 5 to August 4, 2026, along with the US dollar exchange rate used in BPC’s letter of credit settlement, the BERC adjusted the price for August.

Mofizur Rahman, president of the Aviation Operators Association of Bangladesh, said the increase in jet fuel prices has raised the cost burden on airlines and should be reflected in passenger fares.

He said the fuel price has risen to Tk 230 per unit, which, according to his assessment, warrants an increase of around Tk 350 to Tk 400 per passenger.

According to Rahman, the immediate impact of the higher fuel price will be felt by airlines as their operating costs will increase.

Rahman, also the managing director of Novoair, a private airline, said that if the additional cost is not passed on to passengers through higher ticket prices, airlines will ultimately be unable to recover the increased costs and could incur losses.

Imran Asif, chief executive officer of Air Astra, another private carrier based in Dhaka, said, “We will be assessing the impact and revising fares as needed if the fuel price does not come down even after two weeks.”