Bangladesh Hikes Fuel Prices by Up to 17.4% as Middle East Conflict Raises Costs
Bangladesh raised fuel prices by up to 17.4% effective Monday, its third hike since April, to reduce losses at state-owned Bangladesh Petroleum Corporation.
Bangladesh has raised fuel prices by as much as 17.4%, effective Monday, in a move aimed at reducing mounting losses at the state-owned Bangladesh Petroleum Corporation as global oil prices and shipping costs climb amid instability in the Middle East.
Under the revised rates, diesel rose to 135 taka per litre from 115 taka, an increase of 17.4%. The price of 95-octane gasoline went up to 165 taka per litre 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 had more than doubled since March 2026, while freight charges had risen sharply because of regional instability. The government said the adjustment was necessary to curb losses, conserve foreign exchange reserves and reduce fuel smuggling to neighbouring countries where prices are higher.
According to the ministry, Bangladesh Petroleum Corporation incurred losses of 228.76 billion taka (about $1.9 billion) between March and August. The latest increase could cut annual losses by roughly 100 billion taka. The ministry also pointed to substantial subsidies for liquefied natural gas, saying the government had continued to support electricity and gas supplies despite higher import costs linked to the regional energy crisis.
The hike is the third since April, following increases in April and June that were also intended to offset rising import costs driven by higher global oil prices.
The measure is expected to push up transportation and production costs across the import-dependent economy, adding to inflationary pressures. Industries, including the country's key garment export sector, are already contending with an acute energy crunch.
Exporters voiced concern that the higher fuel costs would further squeeze manufacturers. "The fuel price hike will hurt everyone, from common people to businesses and industries. It will fuel inflation, increase production and transportation costs, trigger job losses and force some businesses to downsize," said Anwar-ul Alam Chowdhury, president of the Bangladesh Chamber of Industries.
He added that the move would add pressure across the economy, including on manufacturers already struggling with energy shortages and thin margins.
The exchange rate used in the ministry's figures was $1 = 122.6500 taka.