Bangladesh hikes jet fuel prices by 80%

Dhaka has cited volatility in the global market linked to the US-Israel war on Iran as the trigger for the move

Bangladesh has enacted an 80% hike in jet fuel prices, the second upward revision in March, the national regulator announced on Tuesday.

The Bangladesh Energy Regulatory Commission (BERC) cited volatility in global prices amid the Middle East conflict as the reason for the move.

“We had to adjust the jet fuel price for the second time this month, considering the international fuel price rate which has shot up,” BERC Chairman Jalal Ahmed was quoted by AFP as saying.

Jet fuel has been set at $1.32 per litre for international flights. The revised rates will apply to both local and foreign carriers, although pricing tiers may vary depending on operational categories. The new rates took effect from midnight on Tuesday.

Earlier this month, BERC made a similar move to sharply increase jet fuel prices, although the decision was suspended within hours following an emergency review.

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Bangladeshi Prime Minister Tarique Rahman on Wednesday chaired a special meeting to determine necessary steps to address the fuel situation amid rising global oil prices triggered by the ongoing Middle East conflict, local media reported.

Other South Asian nations have also been impacted by fuel supply disruption.

Pakistan has kept petrol and high-speed diesel prices unchanged in recent weeks, but jet fuel and kerosene rates have been increased without a formal announcement, the Dawn news outlet reported.

India and Nepal have kept jet fuel prices unchanged.

Bangladesh relies on imports for about 95% of its energy requirements for its 175 million people. India is expected to supply 180,000 tonnes of diesel to Bangladesh via pipeline each year under a pact with its eastern neighbor.

Earlier this month, a top Bangladeshi official said New Delhi will supply 5,000 tonnes of diesel via a pipeline through the Parbatipur border, as part of the agreement.

Dhaka, meanwhile, has announced plans to start operations of the first nuclear power project in the country next month. The first unit of the Russian-built Rooppur Nuclear Power Plant will be made operation in early April, authorities said earlier this month. The facility is projected to supply 1,200 megawatts (MW) of electricity to the national grid by the end of this year.