Bangladesh has sharply increased jet fuel prices by nearly 80 per cent, marking the second revision this month, as the Bangladesh Energy Regulatory Commission (BERC) responds to rising global energy costs linked to escalating tensions in the Middle East.
Under the new rates announced this week, domestic aviation fuel prices have surged from Tk 112.41 to Tk 202.29 per litre, while international jet fuel prices have climbed from $0.7384 to $1.3216 per litre.
Officials say the hike reflects soaring international fuel prices and currency pressures, but aviation operators and migrant worker representatives warn it could trigger a spike in airfares and worsen travel challenges for thousands of Bangladeshi workers flying to Middle Eastern countries for employment.
Industry bodies have criticised the steep increase, arguing that the timing could severely strain airlines and travellers already dealing with high ticket demand and limited flights.
Airfares Likely To Rise As Fuel Costs Soar
The sharp hike in jet fuel prices is expected to have an immediate impact on airline operating costs, which are heavily dependent on aviation fuel one of the largest expenses for carriers worldwide. According to the new pricing structure set by BERC, domestic airlines will now pay Tk 202.29 per litre of jet fuel, up from Tk 112.41 earlier this month, while international airlines will face prices of $1.3216 per litre compared with the previous $0.7384.
The regulator said the decision was necessary due to the steep rise in global oil prices and the volatility of international energy markets amid geopolitical tensions in West Asia. The commission also considers international Jet A-1 benchmark prices, foreign exchange rates used in import settlements by the state-run Bangladesh Petroleum Corporation (BPC), and domestic logistics costs when determining monthly fuel rates.
BERC Chairman Jalal Ahmed said the regulator had to revise the prices again as global fuel costs had “shot up,” making the adjustment unavoidable. However, the move is expected to ripple through the aviation sector quickly, with airlines likely to pass on the increased fuel costs to passengers through higher ticket prices, especially on popular routes connecting Bangladesh to Gulf countries.
Concerns Grow For Migrant Workers And Airlines
The price hike has triggered concern among migrant worker groups and aviation industry stakeholders who fear that travel may become significantly more expensive. Bangladesh has millions of citizens working overseas, particularly in Middle Eastern countries, and many rely on affordable flights to travel for employment or return home.
Shamim Ahmed Chowdhury Nomal, former general secretary of the Bangladesh Association of International Recruiting Agencies, warned that migrant workers are already struggling with limited flight availability and rising ticket costs.
According to him, workers travelling to Gulf destinations have been paying unusually high fares due to a shortage of flights and heavy demand, and the latest fuel price surge could further push fares beyond the reach of many labour migrants. At the same time, airline operators argue that the decision may have been premature.
Md Mofizur Rahman, secretary general of the Aviation Operators Association of Bangladesh, said that several fuel shipments had recently arrived at previously negotiated prices and that the country is not currently facing a shortage of aviation fuel.
He criticised the regulator for implementing such a steep increase based on anticipated global price rises, warning that the move could place airlines under severe financial pressure and even lead to the suspension of some domestic routes if operational costs become unsustainable.
The Logical Indian’s Perspective
Energy shocks triggered by global conflicts often ripple far beyond geopolitics, affecting everyday lives in unexpected ways. In Bangladesh’s case, a surge in aviation fuel prices does not just affect airline balance sheets it directly impacts migrant workers whose livelihoods depend on affordable travel and access to overseas jobs.
While governments and regulators must respond to volatile global markets, decisions that affect essential mobility should be guided by transparency, consultation with industry stakeholders, and sensitivity to vulnerable communities.
