Jet fuel prices hiked for domestic and international flights in Bangladesh
Price of jet fuel for domestic flights has been set at Tk 112.41 per litre, marking a sharp increase of Tk 3.62 from February's rate of Tk 108.79 per litre
ATT Desk Report 
The Bangladesh Energy Regulatory Commission (BERC) has increased the price of Jet A-1 aviation fuel for March, implementing a substantial hike that will affect both domestic travellers and airlines operating in the country-reports the Business Standard.
According to an official order issued on Sunday (8 March), the price of jet fuel for domestic flights has been set at Tk 112.41 per litre, marking a sharp increase of Tk 3.62 from February's rate of Tk 108.79 per litre. However, earlier data from the commission indicates a more dramatic rise, with domestic fuel climbing by Tk 17.29 from Tk 95.12 per litre in February, reflecting adjustments in the pricing mechanism.
For international flights, the price has been fixed at $0.7384 per litre (excluding duty and VAT), up from $0.7131 in February—an increase of approximately $0.025. Some reports noted a steeper adjustment from $0.62 in the previous month, suggesting variations in the calculation methodology.
Factors behind the adjustment
BERC stated that the revision was based on a comprehensive review of multiple factors, including the average published Platts rate for Jet A-1 in the international market between 5 February and 4 March 2026. The commission also considered US dollar exchange rates applied during letter of credit (LC) settlements by the state-run Bangladesh Petroleum Corporation (BPC), alongside fluctuations in local diesel prices and transport costs for coastal tankers and tank lorries used in fuel distribution.
New pricing framework
This monthly adjustment follows a structured framework established on 13 May 2025 after a public hearing. A specialised committee, formed on 25 May last year, continuously monitors global price volatility, currency fluctuations, and domestic logistics costs to recommend monthly updates.
Following a review of the committee's latest recommendations and a formal hearing, the commission approved the new rates effective from midnight. The revised prices will remain in effect until the next monthly revision, with the full order detailing the breakdown available on the BERC website.
Industry analysts anticipate that the increased fuel costs will likely be passed on to passengers through higher airfares, potentially impacting travel demand in the coming months.
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