Bangladesh has raised fuel prices by up to 17.4%, adding fresh pressure on consumers and businesses already facing power and gas shortages.
The new rates took effect on Monday as the government moved to reduce mounting losses caused by surging global oil prices and higher shipping costs linked to the conflict in the Middle East.
The price increases are expected to push up transportation and production costs across the import-dependent economy, adding to inflationary pressures. Bangladesh’s key garment export industry is also already grappling with an acute energy shortage.
The Energy Ministry said international fuel prices had more than doubled since March 2026, while freight charges had risen significantly amid regional instability.
Under the latest pricing structure, diesel rose 17.4% to 135 taka (about US$1.10) per litre from 115 taka. Octane increased to 165 taka per litre from 145 taka, while petrol rose to 160 taka from 140 taka. Kerosene also increased to 155 taka per litre from 135 taka.
The latest hike follows increases in April and June, when the government also raised fuel prices to offset higher import costs driven by rising global oil prices.
The ministry said state-owned Bangladesh Petroleum Corporation suffered losses of 228.76 billion taka (US$1.9 billion) between March and August.
It estimated that the latest price increase could reduce annual losses by about 100 billion taka, while helping conserve foreign exchange reserves and curb fuel smuggling to neighbouring countries where fuel prices are more expensive.
The Energy Ministry also highlighted the substantial subsidies required for liquefied natural gas, saying the government had continued supporting electricity and gas supplies despite higher import costs arising from the regional energy crisis.
