Dbarta24 Report — In a major economic blow to consumers, Bangladesh has announced a steep hike in domestic fuel prices, raising the costs of diesel, kerosene, petrol, and octane by Tk 20 per liter.
The revised rates, enforced via a gazette notification issued by the Energy and Mineral Resources Division on Sunday, took effect on Monday, driving fuel prices to their highest levels in the nation’s history.
Under the updated pricing structure:
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Octane: Tk 165 per liter (up from Tk 145)
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Petrol: Tk 160 per liter (up from Tk 140)
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Kerosene: Tk 155 per liter (up from Tk 135)
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Diesel: Tk 135 per liter (up from Tk 115)
The dramatic surge is widely expected to trigger a cascade effect across the domestic economy, inflating transport fares, agricultural production costs, freight charges, and essential consumer commodity prices.
Global Volatility and Mounting Fiscal Losses
According to the official government notification, the adjustment stems directly from escalated international oil prices and rising ocean freight charges driven by ongoing conflict in the Middle East since March.
Despite global crude prices more than doubling during this period, state authorities shielded domestic consumers by holding back full price adjustments. Consequently, the Bangladesh Petroleum Corporation (BPC) absorbed massive financial strain, incurring losses amounting to Tk 22,875.66 crore between March and August alone.
A Seven-Month Upward Trajectory
The domestic fuel market has seen significant upward adjustments over recent months. When the BNP-led government assumed office on February 17, prices stood at Tk 100 for diesel, Tk 112 for kerosene, Tk 116 for petrol, and Tk 120 for octane following automated monthly price calibrations introduced earlier in 2024.
However, price pressures quickly mounted:
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April 19: Diesel increased by Tk 15, kerosene by Tk 18, petrol by Tk 19, and octane by Tk 20 per liter.
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June: Kerosene, petrol, and octane were raised by an additional Tk 5 per liter.
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Latest Hike: An across-the-board increase of Tk 20 per liter across all four fuel types.
In total, over the past seven months, diesel prices have climbed by Tk 35 per liter, kerosene by Tk 43, petrol by Tk 44, and octane by Tk 45—marking a sharp cumulative increase across all major energy categories.
Long-Term Pricing Trends
This latest surge marks a continuation of a broader long-term escalation in domestic energy costs. Between 2009 and July 2024, diesel and kerosene prices surged from Tk 44 to Tk 106.75 per liter (a 142% increase), while petrol rose from Tk 74 to Tk 122 and octane from Tk 77 to Tk 127. A previous single-day record hike occurred on August 5, 2022, when rates jumped between 42% and 51%.
With global energy markets remaining highly unpredictable, market analysts warn that domestic businesses and households must prepare for persistent inflationary pressures across supply chains and everyday essentials.