United News of Bangladesh

The government has increased the prices of octane, petrol and kerosene by Tk 5 per litre while keeping diesel prices unchanged, according to a notification issued by the Energy and Mineral Resources Division on Sunday. Under the revised rates, diesel will continue to be sold at Tk 115 per litre at the consumer level. The price of octane has been raised to Tk 145 per litre from Tk 140, while petrol will now cost Tk 140 per litre, up from Tk 135. The kerosene price has also been increased to Tk 135 per litre from the previous Tk 130. Officials said the latest adjustment was made under the government's automatic fuel pricing mechanism in line with fluctuations in global fuel prices. The new prices came into effect from today. The previous adjustment in fuel prices was made on April 30.

Soaring fuel prices and global disruptions linked to the Iran war are putting pressure on tourism-dependent economies across Southeast Asia, just as the region heads into its peak travel season. Countries such as Thailand, Vietnam and Cambodia are facing weaker travel demand, higher airfares and flight disruptions driven by rising jet fuel costs and uncertainty over the conflict’s impact on global energy supplies. Tourism in Asia is still recovering from the COVID-19 pandemic, but officials say the new shock is hitting the sector before it fully stabilises. Higher transport and living costs are also prompting many families to cut back on travel. “With fuel prices going up and tourists declining, how can we earn?” said Siv Pech, a 58-year-old tuk-tuk driver near Cambodia’s famous Angkor Wat temple complex in Siem Reap. Tourism plays a key role in many Southeast Asian economies, accounting for nearly 13% of GDP in Thailand, around 9% in Vietnam, and supporting millions of jobs in Cambodia. It is also a major source of foreign currency for import-reliant countries such as the Philippines and Nepal. The conflict has pushed up global oil prices, raising transport costs across the region, particularly for countries dependent on fuel imports that previously relied on stable shipping routes through the Strait of Hormuz. Industry experts warn that the combined impact of the pandemic and the war is creating a difficult environment for recovery. “This, coming within five years of the pandemic, is devastating for tourism,” said Jitsai Santaputra of energy consultancy The Lantau Group. Airlines cut flights as fuel costs surge Higher jet fuel prices and supply pressures have forced several airlines, including Vietnam Airlines, AirAsia and Cathay Pacific, to reduce flights or adjust schedules. Airspace restrictions in parts of the Persian Gulf and longer flight routes have also increased operating costs for carriers flying between Europe and Asia. As a result, ticket prices have risen sharply. Cathay Pacific, for example, has significantly increased fuel surcharges for both medium- and long-haul flights. Company officials say jet fuel costs remain elevated, adding further pressure on pricing. Travelers are also booking later than usual, reflecting uncertainty over travel conditions. Travel plans disrupted For many travellers, the rising costs are forcing difficult decisions. Freelance travel writer Sandra Awodele had planned a long-awaited trip to Thailand this summer but abandoned her plans after checking flight prices. “I looked at the fares and that was the end of it,” she said. Local workers feel the strain The impact is also being felt on the ground across Southeast Asia, where tourism supports millions of small businesses and informal workers. In Cambodia’s Siem Reap, tuk-tuk driver Siv Pech said his income has fallen sharply. He now earns as little as $5 a day, down from about $20 previously, with fuel costs taking up most of his earnings. “Some days I don’t earn anything at all,” he said. Restaurants and small businesses are also under pressure as rising gas and food prices squeeze profits. Weak outlook for regional tourism Tourism accounts for a significant share of economic activity across Southeast Asia, with the industry contributing nearly 11% of GDP in ASEAN countries before the pandemic. Economists warn the Iran conflict could slow growth across Asia-Pacific by reducing travel demand and increasing costs for businesses and consumers. “Higher prices and weaker demand will weigh on tourism and overall growth,” said Albert Park, chief economist at the Asian Development Bank. In Vietnam, hotel operators say travellers are increasingly choosing cheaper accommodation options or cutting back on trips altogether. “This will affect the entire tourism chain,” said hotel operator Le Tuyet Lan. Thailand sees drop in arrivals Thailand, one of the region’s top tourist destinations, has already recorded a decline in visitor numbers. Official data show an overall 7% drop in April, with sharp declines from Europe and the Middle East. In Cambodia, tourism officials also report a steep fall in arrivals to Siem Reap, home to the Angkor Wat temple complex. Business owners say rising energy and food costs are adding further pressure, making it harder to stay profitable. “We are worried about inflation and rising costs,” said restaurant owner Sokha Sambo, who employs 14 staff in Siem Reap.

Croatia is preparing for its busy summer tourism season, but rising fuel prices and global tensions linked to the Iran conflict are creating uncertainty for the industry. Dubrovnik’s historic old town is already crowded with visitors from around the world, usually a sign of a strong season ahead. But officials say this year’s outlook is less predictable. Tourism is a key pillar of Croatia’s economy, heavily reliant on foreign visitors. While arrivals have increased so far, authorities warn that higher fuel costs could push up airfares and slow travel demand in the coming months. Miro Draskovic, head of the Dubrovnik Tourist Board, said the US market remains stable, but some Australian tourists are facing difficulties travelling to Europe. “The situation is very challenging, and we are monitoring developments closely every day,” he said. Despite concerns, early indicators are positive. Dubrovnik Airport reported a 13 percent increase in passenger numbers during the Easter period compared to last year. The city remains lively, with busy streets and tourist boats along the coast. Dubrovnik, a UNESCO World Heritage site, is known for its medieval architecture, seaside setting and historic landmarks. Its popularity surged further after being featured in the television series “Game of Thrones.” However, the city could be more vulnerable than other parts of Croatia if the fuel crisis worsens, as about 80 percent of its visitors arrive by air. Airport spokesperson Marina Ruso Mileusnic said officials are approaching the upcoming season with caution, despite connections to around 70 global destinations. Forecasts remain mixed. Earlier in April, International Energy Agency chief Fatih Birol warned Europe could face a major jet fuel shortage within weeks. But this week, EU Transport Commissioner Apostolos Tzitzikostas said there is no clear evidence of such shortages and encouraged people to continue planning holidays. Some travellers are already adjusting. Singapore-based businessman Ramon Padiernos said he had to switch airlines due to the Middle East situation but still travelled to Dubrovnik. “People may feel the impact of higher oil prices, but most still go ahead with their travel plans,” he said. Beyond tourism, the energy crisis has also pushed up inflation in Croatia, which reached 5.8 percent in April, among the highest in the European Union. Croatia welcomed nearly 22 million tourists last year. Out of about 110 million overnight stays in 2025, Dubrovnik alone accounted for more than 4 million, according to official data. Draskovic said hopes remain that conditions will stabilise soon. Until then, he said authorities will continue working day by day to ensure the best possible tourism season.

Prime Minister’s Adviser on Information and Broadcasting Dr Zahed  Ur Rahman on Wednesday said the government may consider adjusting fuel prices if the ongoing conflict in the Middle East prolongs and worsens. “It is not certain yet. The situation in the Middle East could deteriorate or it could improve through negotiations. Tensions involving shipping routes and Iran could negatively impact the global energy market if the situation persists for a prolonged period. If this continues for long, it will be difficult to maintain subsidies indefinitely,” he told reporters at the conference room of the Department of Information at Secretariat. Any decision on fuel price adjustment would depend on the evolving global situation, he added. Clarifying that there will be no fuel price hike in April, the adviser said, “We have already said that if the situation continues, some adjustment in prices may be necessary. I am saying it may be necessary — not that it will definitely happen,” he said, urging the media not to misinterpret his remarks. The adviser said temporary disruptions at the country’s only state-owned refinery, Eastern Refinery Limited, have created some pressure. The refinery typically supplies around 25 percent of the country’s fuel demand, particularly petrol and octane. “The delayed arrival of a 1,00,000-ton fuel shipment from Saudi Arabia has further strained the situation. Another shipment is expected to arrive in early May,” he said. The government has taken measures by increasing imports of refined fuel and building up reserves to address any potential crisis. The issue has also been discussed in a high-level meeting with the Prime Minister, he noted. Acknowledging the signs of strain at the consumer level with long queues seen at petrol pumps in Dhaka and other areas,  Dr Zahed  said vehicles were seen purchasing fuel multiple times or in excess of their immediate needs, adding pressure to the supply system. He said that although supply to petrol pumps has not been reduced stocks are depleting quickly due to unusually high demand. Detailed pump-wise supply data will be published soon, he added.

Fuel prices in India increased on Friday, with premium petrol and industrial diesel becoming more expensive due to ongoing conflicts in the Middle East. According to oil marketing companies, the price of premium petrol went up by about 2.30 Indian rupees per litre, while industrial diesel saw a much bigger jump of around 22 rupees per litre. The new prices took effect immediately. The rise in fuel costs is linked to instability in the Middle East, which has been affecting global oil markets and supply. Higher industrial diesel prices are expected to impact key sectors such as manufacturing, transport and power generation. This could lead to higher production and delivery costs, and eventually push up the prices of everyday goods, local media reported. However, the government downplayed the increase in premium petrol prices, saying it would have limited impact as only a small portion — around 2 to 4 percent — of consumers use this type of fuel.

The government is closely monitoring the ongoing conflict between Iran and Israel but has no immediate plan to raise fuel prices, Finance Adviser Dr Salehuddin Ahmed said on Tuesday. “We are observing the situation. If the fighting drags on, it may put pressure on us. But for now, we will wait,” he told reporters after a meeting of the Advisory Council Committee on Economic Affairs and Advisory Council Committee on Public Purchase at the Cabinet Division’s new conference room at the Secretariat. Responding to a question on whether the conflict could affect domestic fuel prices, Dr Salehuddin said, “There has already been a slight rise in prices internationally, but it hasn’t affected the orders we’ve already placed.” The government is also monitoring gas and LNG prices, he added. Change in budgtory proposal in whitening black money may be considered: Finance Adviser  “If the LNG price goes up significantly, we will consider that in our planning. Fortunately, the LNG import proposal we approved today is at the old price. We’re lucky to be getting it at the earlier rate.” Asked if there is any current impact on trade, he said, “No, there is no impact on trade as of now.” On whether the government is taking any special preparations in anticipation of possible future disruptions, the adviser said, “The LNG and fertiliser import proposals we approved today are at previous prices. Any new proposals in the future may face price effects.” Regarding contingency plan in case the war prolongs, Dr Salehuddin said the Energy Ministry is working on alternatives. “We heavily rely on LNG. The conflict could affect not only fuel but also fertiliser imports and maritime transport. Ships travel through the Strait of Hormuz which could be impacted. But I don’t think the war will last long.” No scope for revolutionary budget overnight: Finance Adviser In response to a question on whether fuel prices have already increased globally, he said, “Yes, prices have gone up in many countries, but we are not making any changes yet. We will wait and watch.”

The government has reduced the prices of diesel, octane and petrol while raising the price of kerosene. The new rates will come into effect from midnight on Sunday. According to a notification issued by the Energy and Mineral Resources Division on Saturday, diesel will be cheaper by Tk 2 per litre, while octane and petrol prices have each been slashed by Tk 3 per litre. In contrast, the price of kerosene has been increased by Tk 10 per litre. With the latest adjustment, diesel will now cost Tk 102 per litre, down from Tk 104. Octane will be sold at Tk 122 per litre, down from Tk 125, and petrol will cost Tk 118 per litre, reduced from Tk 121. Eight-hour strike by Khulna fuel traders over 10-point demand underway Kerosene, however, will now be priced at Tk 114 per litre, up from Tk 104, creating a Tk 4-per-litre difference with petrol. This change aligns with the new pricing guideline aimed at preventing fuel adulteration. Earlier, on May 19, the Energy and Mineral Resources Division introduced the revised "Automated Fuel Pricing Guidelines," under which the price of kerosene is to be set Tk 4 lower than that of petrol per litre. Previously, diesel and kerosene had the same price. Fuel prices in Bangladesh are now adjusted monthly under an automated pricing mechanism that reflects changes in the global oil market. The division said the latest revision aims to ensure the supply of petroleum products at relatively affordable prices for the month of June. On May 1, the government had also reduced the prices of all fuel types by Tk 2 per litre.

The government has increased the prices of all four types of petroleum fuel by Tk 1 per litre, effective February 1, according to a gazette notification from the Energy and Mineral Resources Division.  Under the new pricing, diesel and kerosene will now cost Tk 105 per litre, up from Tk 104. The price of octane has been set at Tk 126 per litre, up from Tk 125, while petrol will now cost Tk 122 per litre, up from Tk 121.  New hike in fuel prices only to benefit commission agents, pro-govt businessmen: CPB The price adjustment was made under the automated pricing formula, aligning local fuel prices with global market trends to ensure an uninterrupted supply of petroleum products at an economically viable rate, the Energy and Mineral Resources Division stated.

Bangladesh's interim government has decreased the prices of petroleum fuels at the retail level with effect from September 1. As per a gazette notification issued by the Energy and Mineral Resources Division on Saturday, the price of diesel and kerosine at the consumer level will be Tk 105.50 per litre, down by Tk 1.25, from the previous price of Tk 106.75. Price of petrol will be decreased by Tk 6 to Tk 121 per litre, from the previous price of Tk 127.  Read more: Govt's executive authority to raise power and gas prices cancelled through ordinance Price of octane will also be decreased by Tk 6 to 125 per litre, from the previous price of Tk 131 per litre.  The new prices of petroleum fuels have been set in continuation of every month’s adjustment process under an automatic pricing formula in line with the global market price, said the Energy and Mineral Resources Division. 

Power tariff will be increased from February 1 instead of March 1, said State Minister for Power, Energy and Mineral Resources Nasrul Hamid on Thursday (February 29, 2024). Gazette notification will be issued today in regard to the power tariff adjustment, he said while briefing reporters at his ministry. Earlier he said the new tariff will come into effect from March 1. He said the power tariff will be hiked between Tk 0.34 and Tk 0.70 per unit for all kinds of consumers depending on their volume of consumption while gas price will go up by Tk 0.75 per unit only for power plants. Govt raises gas prices for power plants by Tk 0.75 per unit He also said that a dynamic fuel pricing will be introduced for the consumers from March 1 under which price of petroleum fuel will go up and down in line with international market price. “Each month fuel price will be declared for the consumers”, he said adding neighbouring India do this every day. He noted that the steps have been taken to minimise the government losses caused by the increase in dollar rate. “This year the government will incur loss of Tk 43,000 crore due to sale of electricity at lower price,” he said. This step has been taken as part of the government move to come out of the subsidy now being given to the power sector, said the minister. According to the BPDB’s Annual Report 2022-23, the fiscal year saw the production of 87,024 million kilowatt hours of electricity at a total cost of TK 98,646 crore.    Its per unit production cost was Tk 11.33, while it was selling electricity at Tk 6.7 per unit — incurring a loss of about Tk 4.63 per unit. Electricity price to go up from March 1: Nasrul This imbalance has led to a staggering loss of Tk 47,788 crore for the fiscal year, as the government grapples with purchasing power from private and international sources at significantly higher rates. With this huge loss, the government has been facing great trouble as it has to purchase electricity worth Tk 82,778 crore from private sector power producers, while it generates electricity worth Tk 13,307 crore from its own generation plants. The annual report also shows that the BPDB’s average per unit production cost from its own plants is Tk 7.63, while it is Tk 14.62 at the independent power producers or IPPs (private sector), at rental plants Tk 12.53, at public plants Tk 6.85, and imported power from India at Tk 8.77. The government purchases electricity from the private sector and India in dollars. Read more: Bangladesh seeks ITFC cooperation to modernise power distribution, transmission system