Jet Fuel Prices Fall for Third Consecutive Month

Jet fuel prices have been reduced for the third straight month, while the prices of diesel, petrol, octane, and kerosene remain unchanged for July, according to the Bangladesh Energy Regulatory Commission (BERC).

The Bangladesh Energy Regulatory Commission (BERC) on Tuesday announced revised fuel prices for July. Under the new rates, the price of jet fuel for domestic flights has been cut by Tk 19.22 per liter, from Tk 150.21 to Tk 130.99.

For international flights, the jet fuel price has been reduced from $0.9808 per liter to $0.8556 per liter.

BERC had also lowered jet fuel prices in June. At that time, the domestic jet fuel price was reduced by Tk 15.67 per liter, from Tk 165.88 to Tk 150.21.

Industry insiders believe the latest reduction will lower fuel costs for both domestic and international airline operations. However, no announcement has yet been made on whether the lower fuel costs will translate into cheaper airfares.

Jet fuel prices had risen sharply in March and April this year. On March 24, prices for domestic routes were increased by nearly 80 percent, while rates for international flights rose by about 79 percent. Another increase followed on April 7.

As global fuel prices began to decline, BERC gradually reduced domestic jet fuel prices. In May, the price was cut from Tk 227.08 to Tk 205.45 per liter. It fell further to Tk 150.21 in June and has now been reduced to Tk 130.99 for July, marking the third consecutive monthly decrease.

Fuel prices, including jet fuel, are adjusted monthly in line with international market trends.

BERC kept the prices of diesel, petrol, octane, and kerosene unchanged for July. Concerns over fuel supplies emerged after the outbreak of conflict in the Middle East, prompting fuel price hikes in Bangladesh in mid-April as global oil prices surged.

Fuel prices remained unchanged in May. However, the government increased the prices of petrol, octane, and kerosene for June.

Meanwhile, BERC has significantly reduced consumer-level prices of privately supplied liquefied petroleum gas (LPG) and autogas for July.

Under the new rates, the price of a 12kg LPG cylinder has been cut by Tk 357 to Tk 1,528. Autogas prices have also been reduced by Tk 16.53 per liter to Tk 70.40.

On June 2, BERC lowered the price of a 12kg LPG cylinder from Tk 1,940 to Tk 1,885. During the same period, autogas prices were reduced from Tk 89.50 to Tk 86.93 per liter.

The latest adjustment means the price of a 12kg LPG cylinder has fallen by an additional Tk 357 within a month. Prices of LPG cylinders of other sizes have also been reduced proportionately.

Despite the official rates set by BERC, LPG is rarely available at the regulated price in the retail market. Retailers frequently charge higher prices through various means.