Bangladesh lowers jet fuel prices for third straight time as global market pressures ease

Domestic jet fuel prices have fallen by nearly Tk 77 per litre in two months following successive regulatory adjustments

The Bangladesh Energy Regulatory Commission (BERC) has reduced the price of Jet A-1 aviation fuel once again, marking the third consecutive cut in just over a month.

For June, the price of jet fuel for domestic flights has been lowered to Tk 150.21 per litre from Tk 165.88, a reduction of Tk 15.67 per litre, the BERC said on Sunday.

For international flights, the duty- and VAT-free jet fuel price for both local and foreign airlines has been cut from $1.08 per litre to $0.98 per litre.

The new rates will take effect at midnight on Sunday and remain in force until further notice.

The BERC said monthly jet fuel prices are being adjusted under a commission order issued on May 13, 2025, based on Platts benchmark rates published in international markets.

For the latest revision, the regulator considered the average Platts rates published between May 22 and Jun 4.

It also factored in the US dollar exchange rate used by the Bangladesh Petroleum Corporation (BPC) for settling letters of credit, as well as changes in coastal tanker and tank-lorry transport costs stemming from diesel price fluctuations.

According to the BERC, a technical committee formed to analyse the data submitted its report on Jun 7, and the commission approved the new prices following a hearing.

Nearly Tk 77 Cut in 3 Rounds

On May 23, the BERC cut the domestic price from Tk 205.45 to Tk 165.88 per litre, a reduction of Tk 39.57. Earlier, on May 7, the price was reduced from Tk 227.08 to Tk 205.45.

As a result, domestic jet fuel prices have fallen from Tk 227.08 per litre on Apr 7 to Tk 150.21, a cumulative decline of Tk 76.87 in two months.

International jet fuel prices have also dropped over the same period, from $1.48 per litre to $0.98, a decrease of nearly 50 US cents.

Sharp Rise in March and April

On Mar 24, domestic jet fuel prices jumped from Tk 112.41 to Tk 202.29 per litre, while international prices rose from $0.74 to $1.32.

Another increase followed on Apr 7, lifting prices to Tk 227.08 and $1.48 respectively.

Before that, domestic jet fuel cost Tk 95.12 per litre on Mar 8 and Tk 94.93 in January.

The BERC had previously attributed the volatility to West Asia conflicts, tensions surrounding Iran and fears of disruptions to energy shipments through the Strait of Hormuz.

Following the sharp March hike, the Aviation Operators Association of Bangladesh criticised the increase as “unreasonable”.

However, with international jet fuel prices easing since the second half of May, BERC has continued to lower domestic rates.