Fuel Prices Rise Across Bangladesh

Bangladesh has witnessed an increase in fuel prices this December, with all major types of petroleum products seeing a rise of two Taka per litre. According to a notification issued on Sunday by the Ministry of Power, Energy and Mineral Resources, the price of diesel has been raised from 102 Taka to 104 Taka per litre. Petrol will now sell at 120 Taka per litre, up from 118 Taka, while octane has increased from 122 Taka to 124 Taka per litre. Kerosene prices have also been adjusted, rising from 114 Taka to 116 Taka per litre.

The new prices will come into effect on 1 December. The government has followed a policy of automatic fuel pricing since March last year, aligning domestic prices with fluctuations in the global market. Under this system, new prices are announced each month, reflecting international oil rates, currency exchange trends, and local supply considerations.

The framework for automatic pricing was established through guidelines published on 29 February 2024. These guidelines specify that octane and petrol, predominantly used in private vehicles, are treated as more of a luxury item relative to diesel, which is widely used for commercial transport and industrial purposes. Accordingly, petrol and octane prices are maintained at a higher level than diesel to reflect this practical reality.

Pricing responsibilities are distributed among different regulatory bodies. The Bangladesh Energy Regulatory Commission (BERC) determines the price of aviation fuel, while proposals for adjusting furnace oil prices for power generation are currently under review by the commission. The Ministry of Power, Energy and Mineral Resources retains authority over the pricing of diesel, kerosene, petrol, and octane.

Economic analysts have noted that the monthly price adjustments, though moderate, have a direct impact on transportation and household budgets. Rising fuel costs can increase the operational expenses of logistics and commercial transport, which in turn can influence the prices of goods and services across the country. The government maintains that automatic pricing provides transparency and ensures alignment with global market trends, which helps prevent shortages and artificial market manipulation.

With December’s adjustment, drivers and businesses alike may need to account for higher monthly fuel expenditures. At the same time, the policy aims to stabilise the fuel market and maintain reliable supply chains. The authorities have emphasised that the rise is a reflection of global economic conditions and is not indicative of any sudden domestic policy shift.