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The Bangladesh government has decided not to increase fuel prices for April despite sharp volatility in global energy markets caused by the ongoing war in the Middle East, where prices have more than doubled.
This marks the second consecutive month that fuel prices have been kept unchanged. Petrol, octane, diesel, and kerosene will continue to be sold at the existing rates throughout April.
The decision was announced on Tuesday through an official order issued by the Ministry of Power, Energy and Mineral Resources.
According to the order, the retail prices for April will remain as follows:
- Diesel: Tk 100 per litre
- Kerosene: Tk 112 per litre
- Petrol: Tk 116 per litre
- Octane: Tk 120 per litre
These rates were the same in both February and March.
The government had earlier reduced fuel prices by Tk 2 per litre in January and by another Tk 2 per litre in February.
Since March 2024, Bangladesh has been following an automatic fuel pricing mechanism linked to the global market. Under this system, prices are normally adjusted every month based on the import cost of fuel from the previous month. The formula for this automatic pricing was officially issued on 29 February 2024.
As per the guidelines, petrol and octane — which are mainly used in private vehicles — are treated as luxury fuels and are therefore priced higher than diesel.
Prices of jet fuel (used in aircraft) and furnace oil (used in power plants) are determined by the Bangladesh Energy Regulatory Commission (BERC). However, prices of diesel, kerosene, petrol, and octane are fixed through executive orders by the Energy and Mineral Resources Division.
Sources at the Bangladesh Petroleum Corporation (BPC) said diesel is currently being sold at Tk 100 per litre. If prices were adjusted according to the present import cost, diesel would need to be sold at around Tk 200 per litre. By keeping the price unchanged, the government will have to provide a subsidy of approximately Tk 50 billion for just one month.
State Minister for Power, Energy and Mineral Resources, Iqbal Hasan Mahmud (Tuku), told parliament on Monday that diesel prices in the global market have surged by 98 percent in the past month. The current import cost of diesel stands at Tk 198 per litre. He added that while octane is being sold at Tk 120 per litre, the government’s actual cost is Tk 150.72 per litre.
