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Govt raises prices amid fuel woes

Govt raises prices amid fuel woes
Representational image: Collected
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The government has increased fuel prices, citing rising global costs and supply pressures linked to the Middle East conflict.

Diesel prices have risen by Tk15 per litre to Tk115, while octane has increased by Tk20 to Tk140.

Petrol has gone up by Tk19 to Tk135, and kerosene by Tk18 to Tk130.

The new rates will take effect from Sunday, according to a notification issued on Saturday night by the Power, Energy and Mineral Resources Division.

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Officials said the adjustment was made to align domestic prices with international markets and stabilise supply.

It marks the sharpest increase since August 2022, although the revised prices remain close to levels seen nearly four years ago.

Fuel prices in Bangladesh were last significantly raised after Russia’s invasion of Ukraine, when global energy markets surged.

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At the time, octane was set at Tk135 per litre, petrol at Tk130, and diesel and kerosene at Tk114.

Following advice from the International Monetary Fund (IMF), the then Awami League government introduced an automatic pricing mechanism, linking domestic fuel prices to global market trends.

Under the system, prices are adjusted periodically based on international fluctuations, a policy that continued under the interim government.

Most recently, on 1 February, the government reduced fuel prices by Tk2 per litre across all categories.

However, a renewed surge in global crude prices – which rose above $100 per barrel after the Iran conflict began – has put Bangladesh under growing pressure.

The government had initially tried to absorb the shock without raising prices, but the subsidy burden grew rapidly.

Prime Minister Tarique Rahman said on Friday that the state had been providing daily subsidies amounting to hundreds of crores of taka.

While increases in petrol, octane, diesel and kerosene were delayed, the government had already raised prices of jet fuel multiple times and furnace oil once, reflecting broader cost pressures across the energy sector.

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