Published : 12 Aug 2026, 02:58 PM
Updated : 08 Sep 2026, 09:32 AM
Bangladesh's annual fuel oil import bill has crossed the $10 billion mark for the first time, surpassing every previous record.
The country spent $10.63 billion on fuel oil imports in the 2025-26 fiscal year (July-June), which ended on Jun 30, more than double the previous year's figure.
The country had spent $5.14 billion on fuel oil imports in FY25, meaning costs rose 107 percent year-on-year.
At the current exchange rate of Tk 123.80 per dollar, the bill translates to Tk 1.32 trillion for the fiscal year.
Bangladesh had previously spent the most on fuel oil imports in FY21, when the bill reached $8.99 billion.
That year, the global economy and industries began reopening after the initial shock of the COVID-19 pandemic.
Demand for fuel and other energy sources rose sharply, pushing up both import volumes and prices.
Fuel oil import costs climbed to nearly $9 billion in FY21 for that reason.
The outbreak in March 2020 brought economic activity to a halt worldwide, sending fuel prices to historic lows.
Prices began rising as economies recovered, reaching around $90 a barrel towards the end of 2021.
The Russia-Ukraine war began in February 2022, before the global economy had fully recovered from the pandemic.
Its impact sent fuel prices sharply higher, with crude crossing $139 a barrel in March that year.
Energy analysts said higher demand and prices drove up fuel oil import costs in FY21 and FY22.
The same factors pushed the bill above $10.5 billion in FY26, they said.
Global oil prices began rising after the US and Israel launched joint military strikes on Iran on Feb 28, with prices at one point crossing $120 a barrel.
They later fell below $100 after dropping to $65 a barrel earlier.
At 10pm Bangladesh time on Monday, Brent crude was trading at $86.72 a barrel, while US West Texas Intermediate crude stood at $81.
Bangladesh Bank’s latest import data show the country spent $75.24 billion on total merchandise imports in FY26.
Of this, $10.63 billion went towards crude oil and petroleum, oil and lubricants (POL) imports.
Fuel oil therefore accounted for 14.13 percent of Bangladesh’s total import bill in FY26.
Spending on crude petroleum imports rose 92 percent to $1.20 billion in FY26, while the POL import bill increased 109.10 percent to $9.44 billion.
In FY25, the country spent $5.14 billion on crude petroleum and POL imports.
Of this, $624.5 million went towards crude oil and $4.51 billion towards POL.
Asked why fuel oil imports hit a record in FY26, energy expert Prof M Tamim told bdnews24.com that higher prices and rising demand are the main reasons.
He said global oil prices are trending upward again and show no signs of easing, suggesting costs in this sector will likely climb further in the coming months.
Asked what the government should do to avoid a repeat of the recent fuel crisis, which saw long queues at petrol pumps, Prof Tamim said the situation had stemmed from panic.
"Everyone thought fuel would run out, which is why people lined up. Many bought more than they needed and stockpiled it."
To prevent a repeat, he advised closely monitoring global conditions and maintaining at least one and a half months' worth of reserves.
Towfiqul Islam Khan, senior research fellow at the Centre for Policy Dialogue (CPD), a private research organisation, said: "Oil demand rises every year. The market heated up after the war began on the 28th of February, driving prices higher.
“All told, fuel oil imports cost far more last fiscal year."
Diesel currently retails at Tk 115 per litre, octane at Tk 145, petrol at Tk 140, and kerosene at Tk 135.
On Jun 1, the government kept diesel prices unchanged at Tk 115 per litre while raising octane, petrol and kerosene by Tk 5 per litre each.
Those prices have remained unchanged through July and August.
The rise in fuel oil import costs reflects not just higher prices but also higher volumes, though total import volume for the full fiscal year has not been disclosed.
Nine-month data (July-March) shows Bangladesh imported 5.74 million tonnes of fuel in that period in 2025-26, up from 5.005 million tonnes in the same period the previous year.
Imported fuels include diesel, crude oil, furnace oil, petrol, octane, jet fuel and base oil.
According to Bangladesh Petroleum Corporation (BPC) estimates, the country's fuel oil demand stood at 7.4 million tonnes last fiscal year.
Bangladesh imported a total of 6.215 million tonnes of fuel oil in FY25, of which 24 percent was crude oil and the remaining 76 percent refined oil, ready for direct use.
