Bangladesh has increased fuel prices by up to 17.4% amid surging global oil costs and regional shipping disruptions.
Bangladesh has raised fuel prices by up to 17.4%, adding fresh pressure on consumers and businesses, as the government moved to curb mounting losses from surging global oil prices and higher shipping costs linked to the Middle East conflict. The new rates, effective from Monday, are expected to raise transportation and production costs across the import-dependent economy, adding to inflationary pressures at a time when industries, including the country’s key garment export sector, are already grappling with an acute energy crunch.
Under the new rates, diesel prices rose 17.4% to 135 taka ($1.11) per litre from 115 taka. Prices of 95-octane gasoline increased to 165 taka per litre from 145 taka, petrol rose to 160 taka from 140 taka, and kerosene increased to 155 taka from 135 taka. The Energy Ministry said international fuel prices had more than doubled since March 2026, while freight charges had risen significantly due to regional instability. The latest increase follows earlier hikes in April and June, when the government also raised prices to help offset rising import costs driven by higher global oil prices.
The ministry said state-owned Bangladesh Petroleum Corporation had incurred losses of 228.76 billion taka ($1.9 billion) between March and August, and that the latest price hike could reduce annual losses by about 100 billion taka, while helping conserve foreign exchange reserves and curb fuel smuggling to neighbouring countries where prices are higher. The ministry also pointed to substantial subsidies for liquefied natural gas, saying the government had continued to support electricity and gas supplies despite higher import costs stemming from the regional energy crisis.
The move drew concern from exporters, who said higher fuel costs would further squeeze manufacturers already battling energy shortages. Mohiuddin Rubel, additional managing director of Denim Expert Ltd, which supplies brands including H&M, said staying competitive meant getting products onto shelves fastest and cheapest, and that gas, power and fuel costs all fed into that equation.
Anwar-ul Alam Chowdhury, president of the Bangladesh Chamber of Industries and chairman of garment exporter Evince Group, said the fuel price hike would affect everyone, from ordinary people to businesses and industries, fuelling inflation, raising production and transportation costs, triggering job losses and forcing some businesses to downsize. He added that the move would add pressure across the economy, including on manufacturers already struggling with energy shortages and thin margins.
Source: Reuters
