The Bangladesh government has raised retail fuel prices by 10 to 15 per cent, effective from Sunday, citing a sharp surge in global crude oil prices and supply disruptions triggered by the ongoing Iran war. The Power, Energy and Mineral Resources Division announced the adjustment late on Saturday, describing it as necessary to align domestic rates with international market trends and ensure supply stability.
Under the new rates, petrol will now cost Tk 135 per litre (up from Tk 116), diesel Tk 115 per litre (up from Tk 100), kerosene Tk 130 per litre (up from Tk 112), and octane Tk 140 per litre (up from Tk 120). The increases range from Tk 15 to Tk 20 per litre, representing rises of approximately 15 to 16.6 per cent across the main fuels.
Officials said the hike was unavoidable after crude oil prices climbed as high as $116 per barrel — from around $70-75 before the conflict — due to disruptions in the Strait of Hormuz and higher freight and insurance costs. The seven-week-old war in the Middle East has tightened global supplies, forcing the state-run Bangladesh Petroleum Corporation to adjust prices to reflect these pressures.
The decision comes despite earlier assurances that fuel prices would remain unchanged throughout April. The government had been absorbing rising import costs through heavy subsidies to shield consumers, even as it imposed rationing and faced panic buying in March when the conflict first intensified.
Energy officials noted that Bangladesh, which imports nearly all its fuel needs, had secured record refined fuel stocks for April and May, but prolonged global volatility made further subsidies unsustainable. The adjustment aims to prevent supply shortages while matching the automatic pricing mechanism introduced in recent years.
The price rise is expected to ripple through the economy, affecting transportation, agriculture and daily living costs in a country already grappling with elevated prices for essentials. No immediate protests were reported at the time of the announcement, but analysts warn of added pressure on households and businesses in the coming weeks.