Fuel prices rise by Tk 20 per litre, including diesel
Graphics: Agamir Somoy
The prices of fuel oil have increased on the international market. To adjust to the rising global prices, the government has raised the prices of all types of fuel oils in the domestic market. A notification to this effect was issued on Sunday night.
Under the new prices, diesel has been increased from Tk 115 to Tk 135 per litre, octane from Tk 145 to Tk 165, petrol from Tk 140 to Tk 160, and kerosene from Tk 135 to Tk 155.
According to the Energy Division, import costs have increased several times as fuel prices rose following the war in the Middle East. Meanwhile, the Bangladesh Petroleum Corporation (BPC) has been incurring substantial losses by selling fuel at relatively low prices in the domestic market. As a result, its own funds have been rapidly depleted. The government has now decided to provide the BPC with assistance of Tk 4,000–5,000 crore to ensure uninterrupted fuel imports.
Relevant sources said the BPC currently has approximately Tk 12,368 crore in its bank accounts. Although this amount will be sufficient to cover import costs for September, a financial crisis may emerge if fuel imports are to continue in October. Against this backdrop, a high-level meeting chaired by Finance Minister Amir Khasru Mahmud Chowdhury on Thursday decided to provide funds to the BPC. It was also stated at the meeting that no decision had been taken to increase fuel prices at that time.
International fuel prices have continued to rise since the outbreak of war in the Middle East, putting considerable pressure on the BPC’s import costs. In September, the price of Brent crude oil rose to $108 per barrel at one point. On Thursday, it fell to around $102 per barrel.
According to BPC data, fuel imports cost Tk 4,195 crore in April 2025. In April this year, the cost rose to Tk 8,135 crore—an increase of approximately 94% in one year. In May, import costs stood at Tk 13,485 crore this year, compared with Tk 4,182 crore in May 2025, representing an increase of around 222%. In August, the cost was Tk 7,603 crore, compared with Tk 2,741 crore in the same month last year—an increase of approximately 177%.
Diesel has been the main source of this additional financial pressure. According to BPC calculations, the corporation is currently incurring a loss of more than Tk 90 per litre of diesel based on international market prices. This translates into daily losses of approximately Tk 130–135 crore.
Over the six months from March to August, the BPC incurred losses of Tk 22,875.66 crore from its own funds. Of this amount, losses stood at Tk 7,866 crore in April alone and Tk 6,198 crore in June. The losses could exceed Tk 5,000 crore in September.
In addition to import costs, customs duties are also increasing the Bangladesh Petroleum Corporation’s (BPC) expenses. Previously, duties were imposed based on the tariff value, but they are now calculated based on invoice prices. As a result, when oil prices rise on the international market, import-stage duties also increase.
The duty per litre of fuel rose from Tk 18.36 in February to Tk 38.64 in March, Tk 38.90 in April and Tk 32.44 in August. Consequently, the BPC’s current cost of importing each litre of diesel, including duties, is approximately Tk 205.
To finance fuel imports, the BPC borrowed approximately Tk 19,500 crore from various banks this year. However, under the rules, the corporation is supposed to maintain enough funds in its accounts to cover at least two months of fuel imports, adjusted to international market prices. Accordingly, it should have approximately Tk 20,000 crore, but it currently has Tk 12,368 crore.
The BPC is also facing several major upcoming expenses. By December, it may require Tk 524 crore to acquire land for an LPG plant, Tk 690 crore to pay an instalment on the loan for the Single Point Mooring (SPM) project, and approximately Tk 3,500 crore for other projects.
Fuel Prices Since the Beginning of the Year
Fuel prices were reduced twice at the beginning of this year. In February, diesel was priced at Tk 100 per litre, kerosene at Tk 112, petrol at Tk 116 and octane at Tk 120. Prices remained unchanged in March.
In April, a major adjustment saw diesel prices rise by Tk 15, or 15%; kerosene by Tk 18, or 16.07%; petrol by Tk 19, or 16.38%; and octane by Tk 20, or 16.67%.
In June, the prices of kerosene, petrol and octane were increased by another Tk 5 per litre. The respective rates of increase were 3.85%, 3.70% and 3.57%. Prices then remained unchanged through July, August and September.
Currently, diesel costs Tk 115 per litre, kerosene Tk 135, petrol Tk 140 and octane Tk 145. Compared with January, diesel prices are now 12.75% higher, kerosene prices 18.42% higher, petrol prices 18.64% higher and octane prices 18.85% higher.
