Bangladesh Hikes Fuel Prices by Up to 17.4% as Global Oil Costs Surge

Bangladesh has raised retail fuel prices by as much as 17.4%, effective Monday, as the government seeks to contain mounting losses at the state oil company amid costlier crude and elevated shipping charges tied to instability in the Middle East.

Under the revised schedule, diesel now costs 135 taka a litre, up from 115 taka — an increase of 17.4%. Octane rose to 165 taka from 145 taka, petrol to 160 taka from 140 taka, and kerosene to 155 taka from 135 taka.

The Energy Ministry said international fuel prices have more than doubled since March 2026, while freight costs have climbed sharply because of regional unrest. The higher rates are expected to push up transport and production expenses across an import-dependent economy, feeding inflationary pressure at a time when industries — including the country's crucial garment export sector — are already contending with a severe energy crunch.

State-owned Bangladesh Petroleum Corporation recorded losses of 228.76 billion taka ($1.9 billion) between March and August, the ministry said. The latest revision could trim annual losses by roughly 100 billion taka, while helping conserve foreign exchange reserves and curbing fuel smuggling to neighbouring countries where pump prices are higher.

The ministry also pointed to substantial subsidies on liquefied natural gas, saying the government has kept electricity and gas supplies running despite higher import bills arising from the regional energy crisis.

Monday's move follows earlier fuel price increases in April and June, when Dhaka similarly adjusted rates to offset rising import costs driven by global oil markets.