The Bangladesh government has decided to leave retail fuel prices unchanged for July, following recent adjustments made over the past three months as global oil markets reacted to tensions in the Middle East.
A notification issued on Tuesday by the Ministry of Power, Energy and Mineral Resources confirmed that the existing prices of diesel, kerosene, petrol and octane will remain in force throughout July.
Under the latest pricing schedule, diesel will continue to sell at Tk115 per litre, the same rate that has applied for the past two months. Kerosene will remain at Tk135 per litre, while petrol and octane will continue to be sold at Tk140 and Tk145 per litre, respectively.
The decision follows a period of volatility in international oil markets after conflict in the Middle East disrupted global fuel supplies and pushed up crude oil prices.
Bangladesh responded by increasing domestic fuel prices in mid-April, while further rises for kerosene, petrol and octane were introduced in June. Prices were unchanged in May.
The current rates are the highest ever recorded for kerosene, petrol and octane in Bangladesh.
The country introduced an automatic fuel pricing mechanism in March 2024, linking domestic prices to movements in the international market. Under the system, retail prices are reviewed every month based on the cost of imported fuel during the previous month.
Since the mechanism was introduced, the government has adjusted prices in line with market conditions, although it has chosen to keep them unchanged in some months when international costs have remained relatively stable.
Bangladesh has experienced sharp fuel price increases before. In August 2022, following the outbreak of the Russia-Ukraine war, the price of diesel was raised by around 42.5% to Tk114 per litre, the largest increase in the country’s history at the time. The government later reduced the price by Tk5 per litre after widespread public criticism.
More recently, prices reached new record levels after the increases introduced in April and June.
Fuel supply also came under pressure earlier this year after fighting involving Iran and Israel heightened concerns over global oil shipments.
The uncertainty briefly led to increased demand at filling stations across Bangladesh, with motorists queuing to secure supplies.
However, authorities increased fuel distribution from 20 April, a day after revised prices took effect, helping to ease shortages. As supply improved, queues gradually disappeared and the market returned to normal.
In Bangladesh, the Department of Energy and Mineral Resources determines the retail prices of diesel, kerosene, petrol and octane through executive orders.
Meanwhile, the Bangladesh Energy Regulatory Commission (BERC) is responsible for setting the prices of jet fuel and furnace oil used in aviation and electricity generation.
With global oil prices continuing to fluctuate, Bangladesh is expected to maintain its monthly review process to ensure domestic fuel prices remain aligned with international market trends.
