Bangladesh raises fuel prices by 17% amid global oil surge

Bangladesh has raised fuel prices by as much as 17.4 percent, adding to the pressures on consumers and businesses that are already grappling with shortages of electricity and gas. The move was taken by the government to curb mounting losses driven by soaring global oil prices and increased shipping costs linked to the conflict in the Middle East.

The new prices, which take effect from Monday, are expected to raise transportation and production costs across the import-dependent economy, further intensifying inflationary pressures at a time when industries, including the country’s key ready-made garment export sector, are already facing a severe energy crisis.

The Ministry of Energy stated that global fuel prices have more than doubled since March 2026, while shipping fees have surged significantly due to regional instability.

Under the new pricing structure, diesel prices rose by 17.4 percent to 135 taka per liter from 115 taka. High-octane gasoline prices increased to 165 taka per liter from 145 taka, regular gasoline rose to 160 taka from 140 taka, and kerosene prices went up to 155 taka from 135 taka.

This latest increase follows previous fuel price hikes in April and June, when the government also raised prices to help offset rising import costs caused by higher global oil prices.

The ministry said that state-owned Bangladesh Petroleum Corporation incurred losses of 228.76 billion taka ($1.9 billion) between March and August, and that the latest price increase could reduce annual losses by approximately 100 billion taka, while preserving foreign exchange reserves and curbing fuel smuggling to neighboring countries where prices are higher.