Airlines slam Tk 202 jet fuel hike decision

The decision, effective from Tuesday midnight, comes just days after BERC suspended a similar hike amid industry backlash and geopolitical uncertainty linked to tensions in the Middle East

Airlines slam Tk 202 jet fuel hike decision
Representational photo

Bangladesh’s aviation operators on Tuesday strongly protested the sudden jet fuel price hike to Tk 202.29 per litre, warning of severe financial strain and a possible suspension of domestic flights if the decision remains in force, a press release said.

According to the release from the Aviation Operators Association of Bangladesh (AOAB), the nearly 80 per cent increase in Jet A-1 prices by the Bangladesh Energy Regulatory Commission (BERC) is “unjustified and detrimental”.

The decision, effective from midnight, comes just days after BERC suspended a similar hike amid industry backlash and geopolitical uncertainty linked to tensions in the Middle East.

Under the revised rates, domestic jet fuel prices have surged from Tk 112.41 to Tk 202.29 per litre, while international rates have jumped to $1.3216 per litre from around US$0.7385.

AOAB Secretary General and NOVOAIR Managing Director Mofizur Rahman questioned the rationale behind the hike.

“The relevant ministry has already confirmed that there is no shortage of fuel. Around 25 oil tankers arrived in the past 22 days, and fuel was purchased at earlier prices. Global oil prices have also declined, so such an increase is not justified,” he said.

He further noted that Bangladesh’s price hike far exceeds regional trends, with India and Nepal keeping prices unchanged, while Pakistan and the Maldives recorded significantly lower increases.

“The AOAB believes that, if implemented, the decision will place severe financial pressure on airlines and saddle domestic passengers with additional costs,” the press release said.

“The increase in jet fuel taxes will further escalate operational costs, hindering the sustainable growth of the aviation industry. It may even lead to a complete suspension of domestic flight operations,” the release added.

The association has urged the government to urgently review the decision and adopt a realistic pricing mechanism to ensure sector stability.

Industry leaders warned that the move could sharply raise airline operating costs, drive up airfares and threaten the viability of domestic routes.