Bangladesh cuts jet fuel prices again for domestic, international flights

The Bangladesh Energy Regulatory Commission (BERC) has announced a significant reduction in jet fuel prices for both domestic and international flights, effective from midnight.

For domestic flights, the price of jet fuel has been slashed by Tk 39.57 per litre, bringing it down to Tk 165.88 from the previous price of Tk 205.45.

For international routes, the duty- and VAT-free jet fuel price for both local and foreign airlines has been reduced to $1.0823 per litre from $1.34.BERC adjusts the price every month to keep up with international market prices.

This marks the second price cut in May.

On May 7, BERC had reduced the domestic jet fuel price from Tk 227.08 to Tk 205.45 per litre, while lowering the international rate from $1.48 to $1.34.

Prior to the recent downward trend in May, aviation fuel prices had witnessed a series of steep hikes earlier in the year.

BERC previously attributed this instability to geopolitical tensions in the Middle East, and supply chain anxieties surrounding the Strait of Hormuz.

The prices were hiked to Tk 227.08 per litre from Tk 202.29 for domestic routes and $1.48 for international routes on Apr 7.

On Mar 24, a massive surge saw domestic rates jump to Tk 202.29 from Tk 112.41, while international rates increased to $1.32 from $0.74.

Domestic prices were increased to Tk 112.41 from Tk 95.12, and international rates reached $0.7384 on Mar 8.

Following the dramatic price spikes in March, the Aviation Operators Association of Bangladesh (AOAB) had strongly criticised the hikes, labelling them "unreasonable".