Fuel Prices Hiked Sharply: Diesel Now Tk 115, Octane Tk 140 per Litre

The government has raised fuel prices to record highs, increasing diesel by Tk 15 per litre, octane by Tk 20, petrol by Tk 19, and kerosene by Tk 18.

According to the new rates, which came into effect at midnight, diesel will now cost Tk 115 per litre (up from Tk 100), octane Tk 140 (up from Tk 120), petrol Tk 135 (up from Tk 116), and kerosene Tk 130 (up from Tk 112).

The price hikes were announced in a notification from the Ministry of Power, Energy, and Mineral Resources.

This marks the first mid-month adjustment since the automated pricing mechanism was introduced in 2024 to reflect global trends. The government made the move despite global prices trending downward. On Friday, Brent crude fell 9 percent to $90 a barrel, significantly down from late March when it was close to $120. The government had not increased prices at that time.

Energy Division spokesperson Monir Hossain Chowdhury said, “The government tried to keep prices stable in the local market until the very last moment. But volatility in the global market made it impossible. Prices change from morning to afternoon. We tried to keep them stable, but the economy just cannot afford it at this moment.”

He also mentioned that uncertainty over the Strait of Hormuz has disrupted imports. Iran yesterday declared the strait closed, hours after opening it, saying it was responding to a continued US blockade of Iranian ports, calling it a violation of the ceasefire.

With Iran’s tight grip on the strait — a conduit for roughly one-fifth of global oil trade — importing crude oil and liquefied natural gas (LNG) from the Middle East has become a challenge for Bangladesh over several weeks.

As of yesterday, diesel stock stood at 101,784 tonnes, enough for around 10 days. Octane stock was about 29,500 tonnes — enough for 27 days; and petrol stock stood at 18,800 tonnes — sufficient for more than two weeks of demand, with local production continuing as expected, officials said.

On Friday, a 25,000-tonne octane shipment from Malaysia anchored at the Chattogram port, which is expected to be added to the national stock within a day. With the latest shipment and ongoing local production, total stock of octane is expected to hit 55,500 tonnes, which is more than the country’s maximum storage capacity of 53,000 tonnes and enough to last 45 days.

The stock initially improved after a 26,000-tonne octane shipment arrived on April 9, the first consignment since the US-Israel war on Iran erupted on February 28.

Private condensate fractionation plants, which also produce octane and petrol, fear a storage crisis as the Bangladesh Petroleum Corporation (BPC) has decided to procure less locally produced fuel amid rising imported stocks.

Super Petrochemical PLC, one of the country’s largest private refineries, recently informed the BPC that three of its barge tankers have remained idle for several days as the BPC’s distribution companies have reduced fuel collection from them following the arrival of the first consignment of imported octane.

The government had earlier this month decided to keep domestic fuel prices unchanged for April by absorbing rising import costs through heavy subsidies to shield consumers from global energy shocks following the US-Israel war on Iran.

With the latest decision, fuel prices have reached their highest level on record. When the Ukraine-Russia war began in 2022, the then government set diesel at a peak of Tk 114, octane at Tk 135, and petrol at Tk 130. However, fuel prices were cut by Tk 5 within a couple of days amid widespread criticism from different stakeholders.

When fuel prices increase locally, it impacts transportation, irrigation, and industrial production costs, inevitably driving up commodity prices.

Opposition leader and Jamaat-e-Islami Ameer Shafiqur Rahman last night criticised the government’s latest decision to raise fuel prices, calling it “very unfortunate” at a time when people are already grappling with high living costs.

In a post on his verified Facebook page following the announcement, Shafiqur said, “At a time when global fuel prices are declining, the government has announced an increase in fuel prices in the name of adjustment. This is very unfortunate.”

He added that people are already struggling to cope with rising expenses, and the latest hike would worsen their hardship. “This will be a blow to people who are already suffocating under the pressure of living costs,” he said.