BERC Slashes Jet Fuel Prices For Domestic Operators

The Bangladesh Energy Regulatory Commission (BERC) has officially announced a substantial reduction in the price of Jet A-1 aviation fuel for both domestic and international airline operations. According to a formal statutory notification distributed by the regulatory authority on Sunday, 7 June 2026, the retail price of aviation fuel for domestic flights has been reduced by 15.67 taka per litre. Concurrently, the procurement rate targeted at international operators has been lowered by 0.10 US dollars per litre, reflecting recent downward adjustments observed across global energy markets.

Under the newly approved pricing index, domestic airline companies will experience a noticeable reduction in operational expenditure as the cost of Jet A-1 fuel drops from its previous rate of 165.88 taka per litre to a revised threshold of 150.21 taka per litre. Md. Nazrul Islam Sarkar, the Secretary of the Bangladesh Energy Regulatory Commission, clarified through official correspondence that the equivalent tariff structured for international aviation entities has been marked down by 0.1015 US dollars per litre. This procedural adjustment effectively recalibrates the procurement rate from its earlier standard of 1.0823 US dollars per litre down to a newly established baseline of 0.9808 US dollars per litre.

Implementation Schedule and Market Determination Framework

The statutory authority noted that the newly revised tariff structure across the aviation sector is scheduled to enter into active effect from 12:00 am midnight on 7 June 2026. The regulatory commission explained that the revised financial rates for the month of June were calculated following an extensive analytical review of global petroleum market fluctuations. Specifically, the technical evaluations were based on the average daily international Platts rates recorded between 22 May 2026 and 4 June 2026, ensuring that the domestic pricing mechanisms remain aligned with broader global supply trends.

The definitive pricing order was finalised following the successful execution of a statutory public hearing conducted by BERC on 7 June 2026. This open regulatory proceeding was organized in direct response to formal commercial adjustment proposals submitted to the commission by the state-run Bangladesh Petroleum Corporation (BPC) and its secondary marketing subsidiary, Padma Oil Company Limited (POCL). The formal evaluation, public assessment, and subsequent determination of the new tariff limits were carried out strictly in accordance with the legislative mandates outlined under Section 34(4) and Section 34(6) of the Bangladesh Energy Regulatory Commission Act, 2003.

Financial Mechanisms and Broader Industrial Context

During the extensive evaluation process, the commission’s technical committees carefully verified the detailed daily pricing data from the international Platts index alongside the changing financial costs borne by national fuel suppliers. A major element factoring into the ultimate June tariff schedule was the current US dollar exchange rate applied during the commercial settlement of Letters of Credit (LCs) by the Bangladesh Petroleum Corporation. By balancing international commodity fluctuations with local currency settlement parameters, the commission sought to preserve institutional stability while offering financial relief to commercial carriers.

This latest regulatory directive marks a continuing downward trend for domestic aviation costs, following a series of price reductions initiated over the past months to counteract prior market surges. Industry analysts indicate that the systematic alignment of domestic jet fuel costs with global benchmarks helps maintain the regional competitiveness of local aviation infrastructure. The reduction is anticipated to lower overall variable operating costs for commercial airlines, providing much-needed financial breathing room to domestic carriers navigating volatile operational landscapes.