Fuel Fare Falls: Bangladesh Cuts Jet Fuel Prices for Domestic and International Flights
The government of Bangladesh has reduced the price of aviation fuel in the domestic market, with the new rates taking effect from midnight on Tuesday, May 13.
In a formal announcement, the Bangladesh Energy Regulatory Commission (BERC) stated that under the authority granted by Sections 22(b) and 34 of the Bangladesh Energy Regulatory Commission Act, 2003, and after a public hearing on proposals from Bangladesh Petroleum Corporation (BPC) and Padma Oil Company Limited (POCL), it has reviewed and analyzed all relevant data to revise the consumer-level prices of Jet A-1 fuel—both with and without duties and VAT—for domestic and international flights.
According to BERC, “The new price of Jet A-1 fuel for domestic flights, including duties and VAT, has been set at BDT 93.57 per liter, while the price for international flights for both local and foreign airlines—excluding duties and VAT—has been set at USD 0.6066 per liter.”
Until recently, BPC was solely responsible for determining aviation fuel prices. However, following the formation of the interim government, executive orders that previously allowed price setting for electricity and gas were annulled. Subsequently, a government gazette issued on September 15 transferred authority over furnace oil and Jet A-1 pricing to BERC.
Following this, BERC held its first-ever public hearing on jet fuel pricing on March 23. Two distinct prices are maintained for jet fuel on international and domestic routes. In the hearing, BPC had proposed reducing the international rate by one cent per liter and increasing the domestic rate by BDT 1 per liter.
However, BERC’s Technical Evaluation Committee recommended reducing the domestic price from BDT 110 to BDT 105.51 and cutting the international price from 74 cents to 69 cents. The committee also suggested monthly adjustments based on changes in international prices, the exchange rate, coastal transport costs, and tanker lorry margins, keeping all other costs constant.
During the hearing, the BERC Chairman stated that prices will now be adjusted monthly in accordance with international market trends: “If the global price increases, the domestic price will rise; if it falls, the price will drop accordingly.”
