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Published : 20 Apr 2026, 08:13 PM
The latest increase in fuel prices will not significantly drive up inflation, Commerce Minister Khandakar Abdul Muktadir has told parliament.
On Monday, he defended the government’s decision as a “moderate adjustment” in line with global trends.
Responding to lawmakers’ concerns over inflationary pressure following the recent hike, Muktadir said the increase was relatively lower compared with many other countries and would therefore have only a limited effect on production and transportation costs.
“The price increase is relatively lower than in other economies,” he said in the House, adding that its impact on the broader cost structure would remain contained.
His remarks aligned closely with Finance Minister Amir Khosru Mahmud Chowdhury’s earlier assessment on Sunday, when he said the fuel price hike may or may not influence inflation depending on supply conditions and wider market dynamics.
On Saturday, the government raised the prices of four fuel types by Tk 15 to Tk 20 per litre. Under the revised structure, diesel now costs Tk 115 per litre, kerosene Tk 130, octane Tk 140, and petrol Tk 135.
Muktadir said fuel accounts for only 7 to 8 percent of production costs in industrial units.
“A Tk 15 increase in diesel prices will therefore have a limited impact on overall production costs,” he argued.
He added that when transport costs are calculated per unit of goods, the effect of the price hike on inflation is not significantly “impactful”.
According to the minister, the adjustment was made cautiously in line with global pricing trends.
“The hike is very moderate,” he said.
He also noted that fuel prices had risen sharply in many countries even before the recent Iran-related conflict, including instances in the United States where per-gallon prices nearly doubled in some states.
Responding to another question on remittance inflows and export earnings, Muktadir warned that ongoing instability in the Middle East could affect the global economy.
“The entire world is exposed to this potential impact,” he said, adding that Bangladesh would not be an exception.
