Transport costs are surging on the critical Dhaka-Chattogram (Chittagong) route in Bangladesh due to the sudden spike of up to Tk 10,000 per truck, causing a ripple effect through supply chains. For example, the average cost for vehicles moving between Dhaka and Chattogram has increased to between Tk 28,000 and Tk 30,000 from Tk 18,000 and Tk 20,000 at typical peak crisis times. This increase is already being felt by both businesses and consumers.
Two reasons for this: Truck Fares Jump
• Fuel Crisis – Fuel prices are rising, especially diesel, which has increased approximately Tk 15 per litre, but also petrol, octane, LPG, etc. This has been driven by both global oil market volatility and fuel stabilisation tied to IMF agreements.
• Fuel Shortage – Many winterised fuel stations cannot find enough fuel for delivery trucks due to lengthy waiting times at stations and limited supply. Many operators have suspended operations as a result of the uncertainty associated with this.
As fuel shortages and uncertainty continue to impact transport by truck, both the cost and reliability of transport will be adversely affected by these twin issues.
The Chittagong route has been the most severely impacted because of the following reasons:
- The route has been the lifeblood of the Bangladesh economy as it connects Dhaka to Chattogram Port (the largest trade outlet for imports and exports in Bangladesh).
- Goods flow through the route between Dhaka and Chattogram Port.
- The Khatunganj wholesale marketplace (along the route to Chattogram) depends upon regular truck traffic.
The combination of shortage and uncertainty in the availability of fuel for trucks moving between Dhaka and Chattogram has a ripple effect on the entire economy of Bangladesh when either of these two factors is present on the route.
Is This “Logistics Loot” or Real Cost Pressure?
An increasing level of contention around both issues is being raised:
- Actual Cost Increases
- Transport costs have increased by 15 – 20% for all areas
- Delays mean that fewer trips can occur for trucks, leading to both diminished supplies and increased prices
Truck drivers and truck owners are experiencing increased operating costs
Speculative increases in fares?
Many traders claim that fare increases are greater than what fuel costs are at present
Operators are raising charges before the fares have been officially revised
The truth is likely somewhere between a real crisis and opportunistic pricing
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How You Will Be Affected
Even if you do not utilise trucks to move your items, you will still see an effect:
Increased Prices
- Prices of vegetables, rice, onions, etc., are already going up
- Transport costs will be combined with your price at every stage before you obtain them
- Business Pressure
- Manufacturers will pay increased costs for distributing products
- Export sectors can incur delays and potential losses
Farmers Will Lose
The increase in transport costs means less will be purchased from farmers
Prices at the farm may fall, but prices in the city can rise.
What Happens Next?
Officially, the government will be reviewing transport fares.
If fuel supply improves, prices may stabilise. If not, volatility and inflation pressures will continue.
The following are Key Takeaways:
- Truck fares to Chittagong rose by Tk 10,000 due to the fuel crisis.
- Fuel price increases and shortages are the primary reasons for this.
- This will have a ripple effect on food prices, business costs and inflation.
- Consumers will pay for “looting” or for necessity.
This is not a transport story alone — it is the start of a broader cost of living ripple throughout Bangladesh.
