The government of Bangladesh has raised retail prices of all major types of fuel, citing an upward trend in global energy markets.
The revised rates, announced in a handout from the Press Information Department (PID), will take effect from Sunday.
Under the new pricing, diesel will cost Tk115 per litre, up from Tk100, while octane has been increased to Tk140 from Tk120. Petrol will now be sold at Tk135 per litre, compared to Tk116 previously, and kerosene has been set at Tk130 per litre, up from Tk112. This marks increases of Tk15 for diesel, Tk20 for octane, Tk19 for petrol, and Tk18 for kerosene.
The mid-month adjustment deviates from the automatic fuel pricing mechanism introduced in March 2024, which was designed to revise prices on a monthly basis with announcements made at the end of each month. Prior to this, fuel prices were reduced by Tk2 per litre on 1 February and remained unchanged through March and April despite fluctuations in the global market.
Officials attribute the latest hike to heightened instability in international energy markets, largely driven by escalating tensions in the Middle East following joint military actions by the United States and Israel against Iran. The situation has disrupted supply routes, particularly the Strait of Hormuz, a critical corridor for global oil shipments.
The impact has already been visible domestically, with increased demand at filling stations and reports of temporary difficulties in fuel access. Authorities, however, maintain that overall supply remains adequate.
In response to concerns over hoarding, the Energy Department has conducted nationwide drives, recovering more than 5 lakh litres of illegally stockpiled fuel.
Earlier, the government had signalled its intention to avoid price hikes to reduce pressure on consumers. However, officials have acknowledged that prolonged global instability may make continued subsidies unsustainable, leaving room for further adjustments depending on how the situation evolves.
