Fuel price hikes over the years 

 
The government has raised the prices of all four major refined fuels by Tk20 per litre, taking them to the highest levels in the country’s history and threatening fresh cost pressures across transport, agriculture, industry and the retail market.

The Energy and Mineral Resources Division said in the notification that fuel prices and freight charges in the international market had risen significantly since March because of the ongoing war in the Middle East, and that the increase was continuing. Although international fuel prices had more than doubled, domestic prices had not been fully adjusted in the public interest, it said.

As a result, the Bangladesh Petroleum Corporation (BPC) incurred losses of Tk22,875.66 crore between March and August, it claimed.

Fuel price spike during AL period 
During the Awami League’s 15 and a half years in power, from 2009 to July 2024, diesel  and kerosene prices rose from Tk44 to Tk106.75 per litre, an increase of 142 per cent. Petrol and octane prices rose from Tk74 and Tk77 to Tk122 and Tk127 respectively, an increase of nearly 65 per cent.

Prices were raised several times on the grounds of international market movements, import costs and subsidy pressure. The biggest shock came on August 5, 2022, when the prices of all four fuels were raised by 42 to 51 per cent in a single night. Octane rose 51.7 per cent and petrol 51.1 per cent. Earlier, in November 2021, diesel prices jumped by Tk15 at one go. In March 2024, an automatic monthly pricing mechanism was introduced in line with the international market.

Interim government: repeated rises and falls
After the interim government took office in August 2024, prices were adjusted several times in line with the global market. In September that year, octane and petrol prices fell by Tk 6, while diesel and kerosene fell by Tk1.25. In February 2025, all four fuel prices rose by Tk1. In June, diesel fell by Tk2, while petrol and octane fell by Tk3. In December, all four prices rose again by Tk2.

In January and February 2026, prices were cut by Tk2 per litre in two more phases. After the final adjustment in February, diesel stood at Tk100, kerosene at Tk112, petrol at Tk116 and octane at Tk120.

BNP tenure: Tk 35�"45 increase
When the BNP government took office on February 17 this year, the four fuel prices were Tk100, Tk112, Tk116 and Tk120 respectively. Those prices had been effective from February 1 and remained unchanged in March and early April.

In mid-April, however, prices were raised sharply. Citing rising crude oil and freight charges in the international market because of the Middle East war, the government announced new prices on the night of April 18. At that time, Brent crude had reached about $120 a barrel in late March.

From April 19, diesel rose by Tk15, kerosene by Tk18, petrol by Tk19 and octane by Tk20, taking prices to Tk115, Tk130, Tk135 and Tk140 respectively. In June, kerosene, petrol and octane prices were raised by a further Tk5 each, while diesel remained unchanged. Those June prices stayed in force through July, August and early September.

On Sunday, all four fuel prices were raised by Tk20 at one go. With the new prices, diesel is up Tk35, kerosene Tk43, petrol Tk44 and octane Tk45 compared with February this year. In other words, in seven months since the BNP government took office, the prices of the four fuels have risen by Tk35 to Tk45.

BPC’s loss
Rising international oil prices have also pushed up import costs. BPC says its import cost in April 2025 was Tk4,195 crore, but rose to Tk8,135 crore in April this year. In May, costs rose from Tk4,182 crore in the same period last year to Tk13,485 crore. In August, they rose from Tk2,740.62 crore to Tk7,603 crore.

From March to August, BPC’s own-fund losses stood at Tk22,875.66 crore. Of this, April alone accounted for Tk7,866 crore and June for Tk6,198 crore. Sources said September’s loss could exceed Tk5,000 crore.

BPC said it had withdrawn nearly Tk19,500 crore from banks this year to meet import costs. Its bank accounts currently hold about Tk12,368 crore, while two months of import costs require about Tk20,000 crore.

In this situation, BPC wrote to the secretary of the Energy and Mineral Resources Division on September 8. It proposed government support to cover losses from March to August, adjustment of domestic fuel prices in line with the international market, and a reduction or withdrawal of duties and taxes until the war situation improves.

Later, a high-level government meeting was held last week on BPC’s financial crisis. Sources said the meeting, chaired by Finance Minister Amir Khosru Mahmud Chowdhury, decided to provide Tk4,000�"5,000 crore in support to BPC.

According to Sunday’s notification, at current international market prices BPC loses about Tk89 per litre on diesel, translating into a daily loss of about Tk109 crore. Diesel alone could cause annual losses of about Tk40,000 crore. Raising the price by Tk20 per litre could reduce BPC’s annual loss by about Tk10,000 crore, the notification said.

Smuggling risk
The notification said lower fuel prices in Bangladesh compared with neighbouring countries had created a smuggling risk. At present, diesel prices are Tk134.76 in Kolkata, Tk164.83 in Myanmar, Tk161.24 in Nepal, Tk179.42 in Sri Lanka, Tk151.22 in Thailand, Tk137 in Vietnam, Tk140.71 in the Maldives, Tk168.53 in the Philippines, Tk185.48 in Pakistan and Tk144.79 in the United Arab Emirates.