Bangladesh lowers jet fuel prices for fourth straight time as global costs ease

The revised rates take effect from Tuesday midnight

The Bangladesh Energy Regulatory Commission (BERC) has cut the price of Jet A-1 aviation fuel for the fourth consecutive time since May.

For July, the price for domestic flights has been reduced to Tk 130.99 per litre from Tk 150.21, a cut of Tk 19.22.

Duty- and VAT-free jet fuel for domestic and foreign airlines operating international flights has been lowered to $0.86 per litre from $0.98.

In a media statement, the BERC said the new rates would take effect from midnight on Tuesday and remain valid until further notice.

The commission said July's prices were adjusted using the average published Platts Jet A-1 price between Jun 5 and Jul 4, the US dollar exchange rate used in Bangladesh Petroleum Corporation's LC settlements, and changes in diesel-linked transport costs.

The revised international rate will apply at Shahjalal International Airport in Dhaka, Shah Amanat International Airport in Chattogram, Osmani International Airport in Sylhet and Cox's Bazar Airport.

For domestic flights, the new rate will also apply at Jashore Airport.

Domestic jet fuel prices have now fallen by Tk 96.09 per litre since May, from Tk 227.08 to Tk 130.99.

International prices have dropped from $1.48 to $0.86 per litre over the same period.

The latest reductions follow sharp price hikes in March and April, when domestic jet fuel climbed from Tk 112.41 to Tk 202.29 per litre on Mar 24 before rising again to Tk 227.08 on Apr 7.

International prices also increased from $0.74 to $1.32 and later to $1.48 per litre.

The surge followed supply concerns linked to the conflict in West Asia and disruptions through the Strait of Hormuz.

After the March increase, the Aviation Operators Association of Bangladesh criticised the move as "unreasonable".