The government has raised diesel, octane, petrol and kerosene prices by Tk20 per litre, citing a sharp rise in international fuel prices driven by the ongoing Middle East conflict and mounting losses incurred by the Bangladesh Petroleum Corporation (BPC).
According to a statement issued by the Ministry of Power, Energy and Mineral Resources on Sunday night, the revised rates take effect immediately.
Under the new pricing structure, diesel will cost Tk135 per litre, up from Tk115, while kerosene will rise to Tk155 from Tk135. Octane has increased to Tk165 per litre from Tk145, while petrol will now cost Tk160, up from Tk140.
The government noted that global prices of all types of fuel oil, along with freight charges, have increased significantly since March 2026 due to the Middle East conflict, and the trend continues.
Although international fuel prices have more than doubled, domestic rates were kept unchanged initially in the interest of consumers. As a result, BPC incurred losses of approximately Tk22,875.66 crore between March and August this year, the statement said.
The government previously increased diesel prices by Tk15 per litre on 18 April 2026, fixing the rate at Tk115. Despite abnormal price rises in the global market, domestic fuel prices remained unchanged for the following five months.
The statement further highlighted that fuel prices in neighbouring countries remain significantly higher than in Bangladesh. It cited diesel prices of Tk134.76 per litre in Kolkata, Tk164.83 in Myanmar, Tk161.24 in Nepal, Tk179.42 in Sri Lanka, Tk151.22 in Thailand, Tk137 in Vietnam, Tk140.71 in the Maldives, Tk168.53 in the Philippines, Tk185.48 in Pakistan and Tk144.79 in the United Arab Emirates.
The government warned that maintaining significantly lower fuel prices in Bangladesh had increased the risk of cross-border smuggling, adding that fuel purchased using hard-earned foreign remittances should not be diverted through illegal channels.
It also said the government continues to provide substantial subsidies for electricity and gas supplies, particularly in the liquefied natural gas (LNG) sector, to manage the impact of the conflict.
At current global market rates, BPC is incurring losses of around Tk89 per litre on diesel, resulting in a daily deficit of nearly Tk109 crore. Without intervention, annual losses from diesel alone could reach approximately Tk40,000 crore.
The Tk20-per-litre increase, aimed at bringing domestic prices closer to regional levels, is expected to reduce BPC’s annual losses by around Tk10,000 crore.
