The country has once again increased the prices of fuels, making diesel cost Tk 135 per litre as a reaction to soaring prices of international oil and rising shipping charges due to the ongoing crisis in the Middle East region.
Diesel Price Increase of 17.4 Percent
In terms of the revised prices, diesel will now be available at Tk 135 per litre after a previous Tk 115 per litre, indicating a 17.4 percent price increase. On the other hand, octane price has gone up to Tk 165 per litre from Tk 145, while the price of petrol stands at Tk 160 per litre from Tk 140 previously.Kerosene price has increased to Tk 155 per litre from Tk 135 previously. The Energy and Mineral Resources Division announced the increased price of fuels, effective from September 21.
Impact of Global Oil Shock on Bangladesh
There has been a connection drawn between this increase in prices and the surge in global fuel prices. According to Reuters, the Energy Ministry in Bangladesh claims that fuel prices have more than doubled in Bangladesh since March 2026 whereas freight charges have also increased considerably due to instability in the region.
Heavy losses for Bangladesh Petroleum Corporation
This particular increase in price comes after the Bangladesh Petroleum Corporation has incurred some hefty losses. According to Reuters, the state-owned corporation suffered losses worth Tk 228.76 billion (approximately $1.9 billion) from March to August. This is expected to reduce the annual losses of Tk 100 billion for the corporation.Other reasons include the necessity of reducing the use of foreign currency reserves and limiting the smuggling of fuel into neighbouring countries whose fuel prices are higher.
Increased transportation and production costs
According to economist Selim Raihan, there are likely to be other repercussions of increased fuel prices because diesel is widely used for transport and production purposes. He has expressed his concern that increased fuel prices may increase transportation, production, and supply costs, leading to extra inflationary pressure on the economy. Besides, he pointed out that the government’s strategy regarding the management of subsequent inflation due to increased fuel prices has yet to be known.
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Fresh Fuel Hike Adds to 2026 Price Surge
As the name suggests, this hike is made after several others which were done in 2026 when Bangladesh was trying to cope with increased international energy prices.Previously, the government had set the diesel price at Tk 115 per litre starting September 1. This means that the latest decision has added Tk 20 to the price in only a few weeks.
What happens next?
The current hike in the price of fuel is likely to aid in curbing losses in the state-owned petroleum corporation. However, the increase in fuel prices is also likely to cause a rise in production and transportation costs, which may contribute towards inflationary pressures. As the global energy prices continue to be responsive to events in the Middle East, the prices of fuel in Bangladesh will continue to be determined by the oil prices abroad and regional disruptions.
