Ministry Maintains Fuel Prices for May 2026

The Ministry of Power, Energy, and Mineral Resources has officially announced that the retail prices of petroleum products will remain unchanged for the month of May. According to a formal notification issued on Thursday, 30 April 2026, the current market rates for diesel, petrol, octane, and kerosene will be carried forward without adjustment from the previous month.

The directive was confirmed via a gazette notification signed by Md Enamul Haque, Senior Assistant Secretary of the Ministry of Power, Energy, and Mineral Resources. This decision ensures that transport operators, industrial consumers, and the general public will continue to purchase fuel at the rates established during the mid-April pricing cycle.

Official Price Schedule for May 2026

Under the pricing framework maintained for May, the cost per litre for various fuel types across the country will remain as follows:

These figures represent a continuation of the price structure set forth in a prior ministry announcement issued on 18 April 2026. The Ministry’s decision to freeze prices at these levels is intended to provide a degree of domestic economic stability amidst fluctuating global energy trends.

Context of the Automated Pricing Formula

The decision to maintain prices follows the government’s transition to a dynamic, automated pricing mechanism. This system, which was introduced to align domestic fuel costs with the international market, typically involves monthly adjustments based on the Mean of Platts Singapore (MOPS) benchmarks.

According to departmental sources, the current rates were calculated based on international market conditions and supply chain considerations observed during the latter half of April. By keeping prices stagnant for May, the government suggests that the global price of refined petroleum has reached a temporary equilibrium that does not necessitate an immediate domestic hike or reduction.

Impact on the Domestic Economy and Logistics

The stability of fuel prices is a critical factor for the Bangladeshi economy, particularly concerning the cost of production and the inflation of essential goods.

1. Agriculture and Irrigation: Diesel remains the primary fuel for irrigation pumps across rural Bangladesh. Maintaining the price at 115 BDT per litre provides predictability for farmers during the current harvest and planting cycles.

2. Transport and Logistics: Since the majority of commercial haulage and public transport vehicles rely on diesel, the price freeze helps prevent immediate increases in transport fares and freight charges.

3. Industrial Output: Many factories utilise captive power generation fuelled by heavy fuel oil or diesel. Stable energy costs allow manufacturers to maintain consistent pricing for their exported and domestic goods.

Global Energy Market Influence

The Ministry’s decision comes at a time of significant volatility in the Middle East, which has historically influenced global oil indices like Brent Crude. Whilst regional tensions in 2026 have occasionally caused price spikes, the Ministry of Power, Energy, and Mineral Resources appears to be utilising its strategic reserves or contractual agreements to buffer the domestic market against short-term external shocks.

The government continues to monitor international supply routes, particularly the Strait of Hormuz, which remains a vital artery for the country’s energy imports. Any sustained disruption in these maritime corridors would likely force a re-evaluation of the automated pricing formula in subsequent months.

For the duration of May, however, the government has prioritised consumer protection and price certainty. Market analysts suggest that this move will be welcomed by the business community, as it mitigates one of the primary drivers of cost-push inflation during the transition into the summer months. The next price review is expected to take place in the final week of May to determine the rates for June.