The Bangladesh Energy Regulatory Commission (Bangladesh Energy Regulatory Commission) has sharply increased jet fuel prices by nearly 80 per cent, a move that has sparked warnings from the aviation industry about severe financial and operational repercussions.
Under the new pricing, effective from midnight on Monday, March 24, the cost of jet fuel for domestic flights has jumped from Tk 112.41 per litre to Tk 202.29 per litre – an increase of Tk 89.88, or around 80 per cent. For international flights, the price has been raised from Tk 62.91 ($0.7385) per litre to Tk 112.64 ($1.3216), marking a roughly 79 per cent hike.
The increase was finalised following a BERC meeting on March 24, which considered the average of Platts rates from March 5 to March 22, a modified premium for January-June 2026, the US dollar exchange rate, and the price of diesel, which remained unchanged.
However, the Aviation Operators Association of Bangladesh (AOAB) has strongly criticised the hike, calling it “extremely harmful and unreasonable” for the country’s aviation sector.
AOAB Secretary General Mofizur Rahman said the decision does not reflect actual market conditions. “The concerned ministry has already informed that there is no shortage of fuel oil in the country. About 25 oil tankers have arrived in the last 22 days, purchased at predetermined prices, and international oil prices have recently fallen. In this context, it is illogical to increase the price of jet fuel by such a large margin based on fears of future price rises,” he said.
Mostafizur also noted that Bangladesh’s price hike far exceeds that of neighbouring countries. While India and Nepal have kept jet fuel prices unchanged, Pakistan increased prices by 24.49 per cent and the Maldives by 18.54 per cent. “Bangladesh’s 80 per cent increase is unprecedented in the region,” he said.
The AOAB warned that the steep rise will place “severe financial pressure” on airlines, likely leading to higher ticket prices for passengers on domestic routes. Increased taxes on jet fuel could further escalate operating costs, threatening the sustainable development of Bangladesh’s aviation sector. Rahman cautioned that the hike could even result in a complete shutdown of domestic flights if not reconsidered.
Officials at BERC said the adjustment reflects rising global oil prices and the need to align domestic fuel costs with international trends, but industry stakeholders argue the timing and scale of the hike are excessive.
AOAB has called on the government to urgently review the decision and set a realistic and acceptable jet fuel price to ensure stability and growth in the aviation sector.