Jet fuel prices hiked again amid Middle East war

The Bangladesh Energy Regulatory Commission (BERC) on Tuesday once again hiked jet fuel prices as global energy markets remain volatile due to escalating tensions in the Middle East.

Under the latest adjustment, jet fuel for domestic flights has been increased by Tk24.79 per litre, bringing the new price to Tk227.08 per litre. For international operations, the rate has risen from $1.3216 to $1.4806 per litre. 

This marks the third increase in recent weeks. Two earlier hikes last month pushed the per litre cost up by more than Tk100 compared with Tk95.12 in February, highlighting a sharp rise in a short period.

Officials attributed the latest adjustment to rising global oil prices driven by the ongoing conflict in the Middle East. Military actions involving the United States, Israel and Iran have disrupted key energy infrastructure, creating instability in international fuel markets and pushing prices upward.

The rising cost of jet fuel is expected to put additional pressure on airlines, potentially leading to higher airfares for passengers on both domestic and international routes.

Industry insiders warn that continued volatility in global oil prices could keep aviation fuel costs elevated in the coming months, posing challenges for the country’s aviation sector.

Previously, jet fuel pricing in Bangladesh was determined by the Bangladesh Petroleum Corporation. Following a policy shift in September 2024, the authority to set prices for fuels such as Jet A 1 and furnace oil was transferred to BERC, which now adjusts rates monthly in line with global market trends.