Bangladesh has increased retail fuel prices by 10% to 16.6%, with petrol rising to Tk 135 per litre (up Tk 19), diesel to Tk 115 (up Tk 15), octane to Tk 140 (up Tk 20), and kerosene to Tk 130 (up Tk 18).
The hike comes in response to sharp increases in global crude oil prices and tightening supplies caused by the ongoing conflict in West Asia, particularly the Iran war, which has disrupted shipments and raised freight and insurance costs.
This marks a reversal from earlier assurances of no price increase in April; authorities say the adjustment is unavoidable to manage higher import bills, though fuel supply remains adequate despite recent panic buying at stations.
Bangladesh Hikes Fuel Prices By 10-16% as Iran War In West Asia Drives Up Global Oil Costs
Bangladesh, which imports nearly 95% of its energy needs and relies heavily on Middle Eastern supplies, has already faced challenges including panic buying, temporary rationing at fuel stations, and higher spot market prices for LNG and other fuels.
Summary
Bangladesh has raised retail prices of major fuels by 10 to 16.6 percent, citing the sharp surge in global crude oil costs triggered by the ongoing war in West Asia.
The Energy and Mineral Resources Division announced the revision late on Saturday, with new prices taking effect from Sunday, April 19. Under the updated rates, petrol will now cost Tk 135 per litre (up from Tk 116), diesel Tk 115 (up from Tk 100), octane Tk 140 (up from Tk 120), and kerosene Tk 130 (up from Tk 112).
The increase — ranging between Tk 15 and Tk 20 per litre — reflects the government’s response to rising import expenses. Officials pointed to higher global crude prices, supply chain disruptions through key routes like the Strait of Hormuz, and elevated freight and insurance costs linked to the seven-week-old conflict involving Iran.
The Bangladesh Energy Regulatory Commission (BERC) and the ministry described the hike as unavoidable, noting that prolonged instability in the Middle East has made it difficult to sustain subsidies at previous levels. Earlier in April, government advisers had stated that fuel prices would remain unchanged for the month, but warned that adjustments might become necessary if tensions persisted.
Bangladesh, which imports nearly 95% of its energy needs and relies heavily on Middle Eastern supplies, has already faced challenges including panic buying, temporary rationing at fuel stations, and higher spot market prices for LNG and other fuels. The country recently secured alternative diesel supplies from sources like China and India to maintain stocks for about a month, while seeking international financing to cushion the energy shock.
The price revision is expected to add pressure on inflation and household budgets, particularly affecting transportation, agriculture, and low-income families who depend on kerosene and diesel. It could also lead to higher costs for public transport and goods movement across the country.
Authorities have assured that overall fuel supply remains sufficient and attributed recent queues at petrol pumps to increased demand and stockpiling rather than actual shortages. The government has previously approved additional subsidies and explored spot market purchases to mitigate the crisis, but sustained high global prices have now forced this retail adjustment.
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This development comes as the West Asia conflict continues to ripple through Asian economies, with several countries facing similar upward pressure on energy costs. Passengers, commuters, and businesses have been advised to plan accordingly as the new rates come into force.
The Ministry has not specified further hikes in the immediate future but indicated that future adjustments would depend on the evolving global oil market situation.
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