DHAKA: Bangladesh has increased domestic fuel prices by up to 17.4%, with the new rates coming into effect on Monday as the government seeks to manage rising energy import expenses and mounting losses at the state owned Bangladesh Petroleum Corporation (BPC).
Diesel has seen the steepest increase, with its price climbing to 135 taka per litre from 115 taka. The cost of octane has risen to 165 taka from 145 taka, while petrol now costs 160 taka per litre compared with 140 taka earlier. Kerosene prices have also gone up to 155 taka from 135 taka.
The Energy Ministry said international fuel prices had more than doubled since March 2026. It also pointed to higher freight charges caused by instability in the Middle East, which has increased the cost of bringing fuel into the country.
The price revision is expected to affect transport and manufacturing expenses across Bangladesh’s import-dependent economy. Energy-intensive industries, including the garment sector, are already facing difficulties due to shortages of electricity and natural gas.
According to the ministry, the BPC recorded losses of 228.76 billion taka, equivalent to about $1.9 billion, between March and August. Officials estimate that the latest adjustment could reduce the corporation’s annual losses by around 100 billion taka.
The government said the measure would also help conserve foreign exchange reserves and discourage fuel smuggling to neighbouring countries where retail prices are higher.
Bangladesh has raised fuel prices several times this year, including in April and June, as authorities responded to increasing international energy costs. The ministry also highlighted continued government support for liquefied natural gas, electricity and gas supplies despite higher import expenses linked to the wider regional energy crisis.