The government of Bangladesh has announced a decrease of Tk 2 per litre in the prices of all primary fuel oils, citing adjustments made under its automatic pricing mechanism in response to global market trends.
On Thursday, the Ministry of Power, Energy and Mineral Resources issued a statement noting that fuel prices are evaluated and set on a monthly basis to reflect fluctuations in international oil prices and to ensure a consistent domestic supply.
The revised rates indicate that diesel is now available at Tk 102 per litre, a reduction from Tk 104, whereas octane is priced at Tk 122, down from Tk 124. The price of petrol has decreased to Tk 118 per litre from Tk 120, and kerosene will now be priced at Tk 114, down from Tk 116.
The ministry has declared that the new prices will be implemented beginning 1 January.
Officials have stated that the adjustment is in accordance with the latest pricing formula and aims to reduce costs for consumers while maintaining a steady fuel supply.
In Bangladesh, fuel prices have been consistently adjusted since the introduction of the automatic pricing system, which seeks to reduce volatility and more effectively align domestic prices with the international market. Energy analysts suggest that even minor reductions in prices can trigger a ripple effect on transport costs and inflation, particularly in a fuel-import-dependent economy like Bangladesh.
The government did not indicate how long the reduced prices would remain in effect, noting that any future adjustments would depend on changes in the global oil market.
Comparison of Historical Fuel Prices
In 2023, Bangladesh implemented an automatic fuel pricing mechanism aimed at better aligning domestic fuel prices with international oil market trends and minimising sudden price fluctuations.
In August 2022, diesel and kerosene prices experienced a significant increase of Tk 34 per litre, marking the largest single rise in the history of the country, driven by disruptions in the global energy market.
During the 2023–2024 period, fuel prices underwent several adjustments, including both hikes and decreases, in response to the varying global crude oil prices.
By mid-2024, there was a modest reduction in prices due to the softening of global oil prices and a decrease in exchange rate pressures.
In January 2026, the most recent reduction of Tk 2 per litre signifies the ongoing trend of gradual, monthly adjustments in accordance with the automatic pricing formula.
Energy economists observe that although the recent reduction is slight, fuel prices significantly impact transport expenses, food prices, and overall inflation, especially in an economy that heavily depends on imported fuel.
Officials have indicated that future adjustments will remain contingent upon global oil prices, exchange rates, and domestic supply conditions.
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