Fresh fuel price hikes are set to drive up transport costs, goods distribution expenses, and import-export charges, intensifying inflationary pressure and placing fresh strain on households already grappling with high living costs.
Business leaders, consumers and sector insiders said the price hikes – announced amid supply disruptions linked to the Middle East conflict – have already pushed up container depot charges in Chattogram, increasing freight costs and triggering demands for higher bus fares, signalling a broad-based rise in costs across the economy.
They warned that the impact is rapidly spreading across fuel-dependent sectors, raising the risk of further price increases for essential goods.
Stakeholders in the garment sector warned that higher production, transport and generator costs could weaken export competitiveness.
Economist Rumana Huque told TIMES of Bangladesh that the impact of higher fuel prices would not be limited to transport but would spill over into agricultural production costs, industry, supply chains and the consumer level.
“This could push up the prices of essential goods further,” she said.
The Dhaka University professor added that, amid already high inflation, the additional pressure would increase hardship for ordinary people.
The government raised fuel prices on Saturday night, citing sustained increases in global markets.
Under the new rates, diesel is priced at Tk115 per litre, octane at Tk140, petrol at Tk135 and kerosene at Tk130.
The adjustment increased diesel prices by Tk15 per litre, kerosene by Tk18, octane by Tk20 and petrol by Tk19.
Rumana Huque said coordinated market monitoring would be essential to prevent artificial shortages, hoarding or unjustified price increases and fare hikes.
“Strengthening existing social safety net programmes, ensuring support reaches the right beneficiaries, and considering short-term relief alongside long-term reforms in the upcoming budget will be important,” she added.
Separately, the price of a 12kg liquefied petroleum gas (LPG) cylinder has been increased by Tk212 to Tk1,940, effective from Sunday, marking the second hike this month.
Under the new rates, LPG is priced at Tk161.66 per kg, while autogas now costs Tk89.50 per litre.
Rising costs squeeze consumers
Consumers are already feeling the impact of higher fuel prices, with traders citing increased transport costs and supply disruptions as key drivers behind rising prices of essential goods in retail markets.
A visit to several kitchen markets in the capital showed that prices of items such as Sonali chicken, soybean oil, aromatic rice, eggs and a range of vegetables were already elevated, with further upward pressure now emerging.
Sonali chicken is selling at Tk390–400 per kg, while broiler chicken ranges between Tk190 and Tk210. Eggs are priced at Tk110–120 per dozen. Among vegetables, teasel gourd is selling at Tk120–140 per kg, while yardlong beans, pointed gourd, bitter gourd, snake gourd, ridge gourd and aubergine are priced at Tk80 or more.
Retailers said higher transport costs and concerns over disruptions in wholesale supply are adding pressure to the market.
Mohammad Rabiul, a vegetable seller at Hatirpool kitchen market, said rising fuel costs have pushed up transport fares, while fewer trucks have been entering the city with goods in recent days.
“This is already affecting supply and prices in the market,” he said.
Mohammad Asif, who was shopping at New Market, said, “If prices keep rising like this, we will have no option but to cut back on essential spending at home.”
Long queues at fuel stations
Despite repeated assurances from the government that there is no fuel shortage, long queues were seen at filling stations across the capital on Sunday. The decision of fuel prices hike appeared to have no impact on the sufferings of motorists.
Motorcyclists, private car drivers and goods carriers were seen waiting for hours at stations in Banglabazar, Paribagh, Farmgate, Mohammadpur and Uttara.
Mohammad Rana, a Foodpanda delivery worker waiting in line at DL Traders in Uttara, said rising fuel prices have already pushed up his daily costs.
“Life is already difficult with so many challenges. Now it will become even harder. Prices of everything are going up, but our income is not,” he said.
A ride-sharing driver waiting at a filling station in Farmgate said it would be difficult for drivers to sustain their livelihoods if fares are not adjusted in line with higher fuel costs.
Transport sector under pressure
Leaders of the Bangladesh Covered Van, Truck and Prime Mover Goods Transport Owners Association said freight charges on the Chattogram-Dhaka route have already increased by around Tk5,000 per trip due to higher diesel prices.
Transport owners have also called for a revision of fares for long-distance buses and trucks, urging the government to adjust rates in line with rising fuel costs.
They argued that not only fuel prices, but also other operating expenses, have increased significantly over time, and proposed raising long-distance bus fares from Tk2.12 per kilometre to Tk4.05.
However, experts have questioned the justification for another fare hike.
They noted that fares were already increased in 2022 following a previous fuel price adjustment, when the Bangladesh Road Transport Authority set new rates based on higher fuel prices.
Although fuel prices were later reduced, fares were not adjusted downward, and the higher rates have remained in place.
Experts said any new fare adjustment should take into account the existing fare structure, previous fuel price changes and actual operating costs.
Container handling charges rise
In Chattogram, 21 private inland container depots have already raised container handling charges by 8.5 per cent, citing higher fuel costs.
Bangladesh Inland Container Depots Association (BICDA) Secretary General Ruhul Amin Sikder said almost all depot operations – including container transport, lifting, export cargo handling, import delivery and equipment operation – depend on diesel.
He said the increase in diesel prices has made it unavoidable to adjust charges to cope with rising costs.
According to BICDA sources, the 21 depots in Chattogram consume around 65,000 litres of diesel daily. These depots handle all export cargo shipped through Chattogram port and are involved in delivering about 25 per cent of imported goods.
Industry insiders said the increase in depot charges would raise import and export costs, adding pressure along the supply chain and ultimately on consumers.
Garment sector fears rising costs
Stakeholders in garment sector have warned that higher fuel prices could erode export competitiveness by pushing up production, transport and energy costs.
Bangladesh Garment Manufacturers and Exporters Association Director and Asian Group Deputy Managing Director Sakeef Ahmed Salam said the price increase would create multi-layered pressure on the sector.
He said frequent power outages would force factories to rely more on generators, raising operating costs, while higher transport expenses would add strain across the supply chain.
“If our production costs rise above those of competing countries, buyers may shift orders elsewhere,” he said.
He added that unless international buyers agree to adjust prices, profit margins would shrink, with small and medium-sized factories facing the greatest pressure.
Salam also warned that any disruption in fuel supply could delay production and shipments, making it harder for exporters to meet delivery deadlines.
