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Aviation sector braced for impact as Bangladesh fuel costs dwarf regional rates

Aviation operators label "unjustified" price hike a major blow to the industry

Jet fuel prices soar by 80%

Senior Correspondent

bdnews24.com

Published : 24 Mar 2026, 05:00 PM

Updated : 24 Mar 2026, 05:00 PM

The Bangladesh Energy Regulatory Commission (BERC) has increased the price of jet fuel by nearly 80 percent for both domestic and international routes, drawing sharp backlash from the country's aviation industry.

The BERC announced the decision in a media statement on Tuesday, with the new prices taking effect from midnight on Mar 24.

The price of jet fuel for domestic flights has jumped to Tk 202.29 per litre, including duties and VAT, from Tk 112.41 previously.

For international flights, the rate has been increased from $0.7385 to $1.3216 per litre.

This announcement comes just days after a similar hike was declared on Mar 18, but was suspended within an hour by the regulator.

This, however, is the second increase in jet fuel prices this month. The first increase, citing international market volatility triggered by the escalating situation in the Middle East, was announced on Mar 8.

The domestic jet fuel prices rise from Tk 95.12 to Tk 112.41 per litre during the first price adjustment. On international routes, the price was increased from $0.62 to $0.7384 per litre.

The new rates are significantly higher than the previous price hike.

The Aviation Operators Association of Bangladesh (AOAB) has described the hike as "unjustified" and "extremely detrimental" to the country's aviation sector.

In a statement issued on Tuesday, AOAB Secretary General Mofizur Rahman pointed out that the ministry has already assured the public that there is no fuel shortage in the country.

"Over the last 22 days, approximately 25 oil tankers arrived in the country with fuel purchased at pre-fixed prices. International oil prices, on the other hand, have recently seen a decline," Mofizur said.

"Raising prices on such a large scale based on fears of future increases is completely illogical,” he added.

The AOAB highlighted that the price surge in Bangladesh is disproportionately higher than in neighbouring countries.

The jet fuel prices remained unchanged in India and Nepal, and saw moderate increases of 18.54 percent in the Maldives and 24.49 percent in Pakistan.

The association warned that this "abnormal" hike would cripple the domestic airline industry, making air travel unaffordable for citizens and placing local carriers at a severe disadvantage against regional competitors.

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