Jet fuel prices hiked again amid Mideast war

Jet fuel prices in Bangladesh have been raised once again, as global energy markets remain volatile due to escalating tensions in the Middle East.

The Bangladesh Energy Regulatory Commission announced on Tuesday a fresh hike of Tk 24.79 per litre for jet fuel used in domestic flights. With the latest adjustment, the price has been set at Tk 227.08 per litre. For international operations, the price has increased from $1.3216 to $1.4806 per litre.

According to the regulator, the new rates will come into effect from midnight.This marks the third price increase in recent weeks. Earlier, jet fuel prices were raised in two phases last month, pushing the per-litre cost up by more than Tk 100. Before this series of hikes, the price stood at Tk 95.12 per litre in February, highlighting a sharp rise in a very short period.
Officials attributed the latest adjustment to rising global oil prices driven by the ongoing conflict in the Middle East. The situation escalated after military strikes involving the United States, Israel, and Iran disrupted key energy infrastructure across the oil-rich region, creating instability in international fuel markets and pushing prices upward.

The rising cost of jet fuel is expected to put additional pressure on airlines, potentially leading to higher airfares for passengers in both domestic and international routes.

Previously, jet fuel pricing in Bangladesh was determined by the Bangladesh Petroleum Corporation. However, following a policy shift, the authority to set prices for fuels like Jet A-1 and furnace oil was transferred to the Bangladesh Energy Regulatory Commission in September 2024. Since then, the commission has been adjusting prices monthly in line with global market trends.

Industry insiders warn that continued volatility in global oil prices could keep aviation fuel costs elevated in the coming months, posing challenges for the country’s aviation sector.