United News of Bangladesh

The government has increased the prices of all types of fuel at the consumer level in line with the rise in global fuel prices. Following the hike, the price of diesel rises to Tk 115 per litre from Tk 100 per litre, octane rises to Tk 140 per litre from Tk 120 per litre, petrol to Tk 135 per litre from Tk 116 per litre, and kerosene to Tk 130 per litre from Tk 112 per litre, said a PID handout. The new prices will come into effect from Sunday. In raising the prices in the middle of the month, the government circumvented the system introduced in March 2024, whereby an automatic pricing formula is used to fix fuel prices on a monthly basis, with prices for the following month announced at the end of each month. As a result, diesel prices have gone up by Tk 15 per litre, octane by Tk 20, petrol by Tk 19, and kerosene by Tk 18. Fuel crisis hits Rangpur, motorists spend hours in queues Previously, fuel prices were reduced by Tk 2 per litre on February 1. The revised rates remained unchanged in March and were also maintained in April despite fluctuations in the global market. The recent escalation of tensions in the Middle East, following joint attacks by the United States and Israel on Iran, has contributed to instability in global energy markets. The situation has particularly affected the Strait of Hormuz, a key route through which a significant portion of the world’s oil supply is transported. The impact has also been felt in Bangladesh, where there has been a surge in demand at petrol stations in recent days. Fuel prices may rise if Middle East conflict prolongs: PM’s Adviser Zahed Consumers reported difficulties obtaining fuel, although the government assured that sufficient stocks are available and supply remains normal. Authorities have also taken action against illegal stockpiling. The Energy Department said that more than 500,000 litres of fuel have been recovered during nationwide drives targeting hoarding. Earlier, the government had indicated it would try to avoid raising fuel prices to ease public hardship. However, Prime Minister’s Adviser on Information and Broadcasting Dr Zahed Ur Rahman said on Wednesday that the government may consider adjusting fuel prices if the ongoing conflict in the Middle East prolongs and worsens. Govt enforces sweeping austerity measures: Cuts fuel use, suspends car loans “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.  

A looming jet fuel shortage in Europe and Asia sparked by the Iran war and the effective closure of the Strait of Hormuz could further upend world travel within weeks if oil doesn’t start flowing again soon — meaning higher airfares and flight cancellations as the summer travel season approaches. In an exclusive Associated Press interview Thursday, International Energy Agency Director Fatih Birol said Europe has “maybe six weeks” of remaining jet fuel supplies and said the global economy faces its “largest energy crisis.” In general, some European countries hold several months’ worth of jet fuel inventory at a time, according to an IEA report released this week. Jet fuel — a refined kerosene-based oil product — is airlines’ biggest cost, making up about 30% of overall expenses, according to the International Air Transport Association. And jet fuel prices have roughly doubled since the war began. Shortages could start next. “Every passing day that the Strait of Hormuz remains shut, Europe is edging closer to supply shortages,” said Amaar Khan, head of European jet fuel pricing at Argus Media. “The strait accounts for around 40% of Europe’s jet fuel imports, but no jet fuel has passed the strait since the war broke out.” Airline officials have largely reacted with caution, acknowledging potential fuel issues but working to reassure customers. Still, some carriers have already passed costs on to consumers by increasing fees for baggage and other add-ons, embedding costs into ticket prices, or raising fuel surcharges. A handful of airlines already are cutting flights. Experts say other parts of air travel — such as scheduling flexibility and routes — would likely be impacted. Here’s a look at how jet fuel supplies work and how consumers might see effects. How does jet fuel get to the plane? Jet fuel is made from crude oil at refineries, which also create gasoline and diesel. Airlines generally buy jet fuel from refineries or fuel companies, similar to drivers buying gasoline from stations, but on a much larger scale. Jet fuel travels on ships and through pipelines and is stored by airlines at airports. Purchasing is handled by airlines. If fuel supplies are running out in a region, that doesn’t necessarily mean there will be no flights. Some airlines might have more stored than others. But remaining flights are likely to be expensive, reflecting fuel costs. Larger airlines have advantages in regions with shortages. They have the financial means to deal with high prices, said Jacques Rousseau, managing director at financial firm Clearview Energy Partners. In Europe, a number of countries are now relying on less than 20 days of coverage in their fuel supplies, according to this week’s IEA report. Supplies haven’t dropped below 29 days since 2020, the report said. If that falls under 23 days, physical shortages may emerge at some airports, resulting in flight cancellations and lower demand, the report warned. Which regions could feel pain? Asia-Pacific countries are the most reliant on oil and jet fuel from the Middle East, followed by Europe, Rousseau said. Most of Europe’s jet fuel is produced by European refiners, but about 20-25% of its supply is missing because of the war, Rousseau said. To fill some gaps, the U.S. has increased its exports of jet fuel to Europe considerably, sending about 150,000 barrels per day in April, or about six times the normal level, Rousseau said. Availability of jet fuel is less of an issue in the U.S., a major oil producer, he added. “I tell my kids ... we’re not so much going to run out of supply,” Rousseau said. “It’s just going to cost more here, whereas in different parts of the world you could actually get to a point where there’s just no fuel.” How much is the world supply of jet fuel lagging? The world is losing 10 million to 15 million barrels of oil a day due to the closure of the Strait of Hormuz, said Pavel Molchanov, senior investment strategist at investment firm Raymond James & Associates. “There are exactly the same refineries in exactly the same places in Asia and Europe, but if there is not enough oil for those refineries to operate, it’s going to lead to physical supply disruption,” he said. Even though the IEA has released 400 million barrels of oil from members’ emergency reserves, that won’t help in the short term, he added. “It could take until the end of the year to get all of those barrels onto the market,” he said. How will my travel be affected? Christopher Anderson, a professor of operations, technology and information management at Cornell University, said travelers should prepare for more than just higher airfares. “This is no longer just a fuel-price story. For airlines, it is now a network-planning story,” he said. “Higher fuel costs matter, but so do longer routings, reduced scheduling flexibility and greater uncertainty about what demand will look like even a few weeks out.” Travelers might see “a market with later booking patterns, more schedule volatility and fewer low-fare options if this disruption lasts into the core summer season,” he said. What are airlines doing? Dutch airline KLM and U.K. budget carrier easyJet told AP they weren’t experiencing current fuel shortages, without commenting further on the IEA’s warning. Still, both airlines are among those that have seen higher costs eat into their budgets. On Thursday, KLM said it would cut 160 flights next month — about 1% of its total European routes. The airline cited “rising kerosene costs” and said a limited number of flights are “no longer financially viable to operate.” In a Thursday update, EasyJet said it expects to see a pretax loss of 540 million to 560 million pounds (about $731 million to $758 million) for the first half of the 2026 fiscal year. Still, CEO Kenton Jarvis said demand remains strong overall — noting that Easter travel was easyJet’s busiest ever for that holiday period. Lufthansa said Thursday that labor disputes and high fuel prices are forcing it to immediately shut down feeder airline CityLine, earlier than planned, and take its 27 older, less fuel-efficient planes out of service. The decision accelerates a shutdown that had been expected for next year. U.S. carrier Delta Air Lines — which frequently flies to European destinations — said on Thursday that it was “aware of the potential jet fuel supply issue” on the continent and monitoring the situation. Delta, which bought a refinery in Philadelphia in 2012 to manage its largest expense, said it doesn’t expect any “near-term impact to our operations.” How are prices affected? Other airlines have sounded the alarm about rising fuel prices, with some already passing along new costs to travelers, often embedded into ticket prices and add-on fees. U.S. carriers Delta, United, American Airlines, Southwest Airlines and JetBlue have all increased checked baggage fees, for example, in recent weeks. United CEO Scott Kirby said in a recent memo to staff that if fuel prices stay elevated, it could add $11 billion in annual costs. “For perspective,” Kirby wrote, “in United’s best year ever, we made less than $5B.” Meanwhile, Hong Kong’s Cathay Pacific recently bumped fuel surcharges by roughly 34% across all routes, while Air India added up to $280 in fees to some flights earlier this month. Emirates, Lufthansa and KLM have also adjusted fees or fares to keep pace with the price volatility.

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. Addressing a press briefing at the Press Information Department in the Secretariat, he also warned that action will be taken against those responsible for failure to prevent deaths from measles and that mob violence will not be tolerated at all. “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,” Zahed said. 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 if the situation continues, some adjustments 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. He said temporary disruptions to the country’s lone state-owned refinery, Eastern Refinery Limited, have created some pressure.   The refinery typically supplies around 25% of the country’s fuel demand, particularly petrol and octane. “The delayed arrival of a 1,00,000-tonne fuel shipment from Saudi Arabia has further strained the situation. Another shipment is expected to arrive in early May,” Zahed said. The government has taken measures by increasing imports of refined fuel and building up reserves to address any potential crisis, he said, adding that the issue has also been discussed in a high-level meeting with the Prime Minister. Acknowledging the signs of strain at the consumer level with long queues seen at petrol pumps in Dhaka and other areas, the adviser said vehicles were seen purchasing fuel multiple times or in excess of their immediate needs, adding pressure to the supply system. He said 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.” Talking about measles, which continues to claim the lives of children in the country, Zahed vowed strict accountability, warning that those responsible for failures in preventing deaths from such diseases will face action. He said every death linked to preventable diseases is being thoroughly investigated, as authorities work to contain the outbreak and prevent further fatalities. The adviser noted that the current measles situation will not improve overnight, as immunity takes time to develop after vaccination. The nationwide immunisation drive, which began on April 5, is ongoing, but immediate results are unlikely, he said. Zahed acknowledged gaps in vaccine coverage in parts of the country, describing the situation as a result of past failures, but stressed that such deaths are unacceptable. “No child should die from a preventable disease,” he said, adding that hospitals are trying their best to support infected patients despite resource constraints, particularly limited ICU facilities. Asked whether action will be taken against the former health adviser to the immediate past interim government for failure, Zahed said every negative incident is being seriously investigated to identify causes and prevent recurrence, warning that failure in such cases is “unforgivable.” He also highlighted the government’s focus on preventive healthcare, including strengthening vaccination programmes and raising public awareness, to bring mortality from preventable diseases close to zero. Talking about mob violence, the adviser said the government is treating recent incidents of mob violence with utmost seriousness and will investigate each case thoroughly, stressing that taking the law into one’s own hand will not be tolerated under any circumstances. Responding to questions from journalists, he said even if a thief or robber is caught red-handed, people have no right to assault, let alone kill, the suspect. “The government has adopted a zero-tolerance policy in this regard.” The adviser acknowledged that there may have been administrative lapses in some cases, saying those are being reviewed to prevent recurrence. Explaining the nature of such incidents, Zahed said mobs are usually spontaneous and unorganised, but recently there has been a worrying trend of organised gatherings being mobilised to carry out attacks or blockades. “These are not mobs in the true sense, but organised crimes,” he said, adding that action will also be taken against such planned violence. He cited the recent incident of Kushtia, where a self-proclaimed ‘Pir’ was beaten and hacked to death over derogatory remarks about Islam, as an example of a planned act. “A case has already been filed over the incident and suspects have been identified.” The adviser said the government will move forward on cases where there is clear social consensus, adding that authorities are willing to review incidents carried out in the name of mob action during the interim government period. Responding to a question about the recent arrest of a female worker of a political party over a social media post, he said the post contained misleading and objectionable information. However, Zahed admitted that greater caution and clearer guidelines are needed in making arrests. He said the government is planning to form a panel of lawyers to review such cases before arrests are made to ensure proper verification. The adviser also expressed concern over the spread of misinformation and hate speech on social media.

The prices of diesel, octane, petrol, and kerosene will remain unchanged in March, the Energy and Mineral Resources Division has said. On February 26, the division sent a letter to the chairman of Bangladesh Petroleum Corporation (BPC) instructing that all types of fuel prices be kept steady. The letter was made public on Sunday morning. Earlier, on February 1, the government reduced fuel prices by Tk 2 per litre. Diesel was lowered from Tk 102 to Tk 100 per litre, octane from Tk 122 to Tk 120, petrol from Tk 118 to Tk 116, and kerosene from Tk 114 to Tk 112. For March, prices will remain the same. Fuel prices in Bangladesh are determined monthly for consumers through an automatic pricing system which adjusts rates based on fluctuations in global oil markets. According to the revised  Automatic Fuel Pricing Guidelines,the Energy and Mineral Resources Division has decided to maintain March fuel prices unchanged.

The prices of fuel in Bangladesh will remain unchanged for March 2025, as per the latest directive from the Energy and Mineral Resources Division. Despite fluctuations in the global market, the government has decided to maintain the existing pricing structure to ensure a stable and affordable supply of fuel for consumers. Draft Renewable Energy Policy fails to support sustainable transition away from fossil fuels: experts Under the current pricing framework, the retail prices per litre will continue as follows: Diesel: Tk 105.00 Kerosene: Tk 105.00 Octane: Tk 126.00 Petrol: Tk 122.00 The pricing system, based on an automated formula that aligns domestic fuel rates with global trends, aims to provide a fair and sustainable price adjustment mechanism. Fuel strike in Rangpur and Rajshahi withdrawn But for this month, authorities have chosen to keep the prices unchanged to avoid economic disruptions. This decision follows a broader government policy of balancing consumer affordability with global market realities while ensuring energy security in the country.

The government Monday lowered fuel prices by Tk5 per litre 23 days after raising the prices by up to 51.68 percent. Prices of diesel and kerosene will now be Tk109, petrol Tk125, and octane Tk130 per litre at the filling stations, State Minister for Power, Energy, and Mineral Resources Nasrul Hamid told UNB. Also, a gazette notification was issued by the Energy and Mineral Resources Division on the new prices, which will be effective from Tuesday midnight. Also read: Diesel price likely to come down in a day or two: Nasrul Hamid The new development came hours after Nasrul said the government was going to make a decision on the adjustment of fuel prices within a day or two. On August 6, the government increased fuel prices to a record high.Diesel and kerosene retail prices were fixed at Tk114, petrol at Tk130 per litre and octane at Tk135 per litre. Also read: Import tax on diesel cut by 5 percent

With prices of everyday items still maintaining an upward trend, the ordinary folks’ frustrations are often spilling out in public, often in the markets when they are confronted with some outlandish hike in the price of some item they are used to having - the most obvious and recent example being eggs. As is always the case with inflation, it is the people who are on fixed incomes i.e. the majority of people who are in jobs earning salaries, who almost inevitably suffer the most. This is because inflation at any time in any place always acts as a drag on the real value of your income, i.e. it diminishes the real value of your wages aka real wages. Though prices of almost all commodities have increased in the recent blow of price hikes, salaries i.e.  remained in their previous form. As a result, people on fixed incomes, as well as lower middle-class groups, are facing distressing times these days, forced to curtail consumption in order to maintain household expenses. Some of them are also engaging more heavily in arguments with the shopkeepers over some pricing policy or the other, asking for clear reasons or analysis, and occasionally even exposing the lack thereof. Even these small victories however, do not lead to any reversal of the pricing policy, nor do they accrue any lasting benefit - in the final analysis, the seller always wins. Given the volatility prevailing in the market, trying to predict where prices will go or chart their future course is a hazardous exercise. Visiting Karwan Bazar, Malibag, Rampura, Khilgaon, and Shanti Nagar Bazar, our correspondent observed that price of every single item on his shopping list - including rice, wheat, fish, vegetables, egg, chicken, milk-powder, soap, and detergent - have gone up. In some rare cases, the price of an item may just have decreased over the last few days after having gone up over a sustained period prior to that - with the overall effect that it is still more expensive than it was, say six months ago. The Directorate of National Consumers Rights Protection (DNCRP), has carried out drives wherever it has received information on price manipulation, said market insiders, with the agency’s chief often at the head of such operations. Rice: the Ultimate Barometer Using the volatility often talked about in energy markets as an excuse, the price of coarse rice has increased by Tk150-200 per 50kg sack in the wholesale market, while this rice is retailing Tk 5-6 per kg higher than it was just 5 days ago. The chinigura pulau rice, which is a finer variety produced here, was sold at Tk 5400 (50 kg sack) on August 14. Today if you go to the market you will see how the asking price has jumped to Tk5850 in the wholesale market recently - an 8.3 percent jump   Fine quality rice including minicate and Nazirshail are selling at Tk 80 to Tk85 per kg while the superior quality of this rice was selling at Tk90 to 95 in the super shops. Rois Uddin, the owner of a gusher shop on the Eskaton Dilu Road, told UNB that he bought coarse rice (BR-28) for an extra Tk200 on top of the  Tk2700 per 50 kg sack. In the absence of the authorities’ effective price monitoring, a group of dishonest traders raised the price, referring to fuel prices, said Ekabbar Hossain, who had gone to buy a 50 kg sack of rice at the Khilgaon Katcha Bazar, a popular kitchen market, on Wednesday. As Ekabbar, a retired school teacher, would find out - unless he was willing to settle for one of the coarser varieties - he had badly under-budgeted, and was forced to settle for a 25 kg sack that evening instead. “Rice price may increase by Tk 5 per 50kg sack as the government fixed the transport fare after oil price hiked, but how can it increase by Tk5-6 per kg,” he exclaimed to the seller while paying, who was only too ready with his well-practised ‘Ukraine War-record hikes in energy-price level rise’ line of reasoning by now. Ekabbar noted fish prices had increased by Tk 10-60 per kg, all arguing the same line of reasoning as the rice seller.  Vegetables like eggplant, long beans, brinjal were selling at Tk60-80 per kg, which was Tk55 -60 per kg before the oil price hiked.     Prices of tomato, carrot, potato, onion, ginger and garlic had jumped by Tk 5-30 per kg. Even vegetable sellers were blaming the war and record energy prices. “But actually it is the result of syndication by a group of dishonest businessmen, thriving on lax price monitoring by the government,” he said. He urged the government to control the runaway price hike, telling UNB that otherwise, people like him (retired and marginal group) would soon fail to bear the monthly household expenditures. Read: Spice prices shoot up ahead of Eid despite sufficient stock Continuing to monitor the prices as an ordinary buyer, the UNB correspondent recorded a substantial hike between Tk 30-50 per kg in the prices of layer, Pakistani, Sonali and indigenous chicken varieties, compared to their price before the Bangladesh government hiked fuel prices. The well-publicised jump in the price of farm eggs, that reached a scarcely believable Tk 150 per dozen, fell back to Tk 130 after effective intervention on the ground by DNCRP.  Away from the markets, A.H.M. Shafiquzzaman, the Director General of DNCRP, told UNB that they are doing their best to make their presence felt on the floor of the markets, working in coordination with law enforcement and intelligence agencies. “There can be no scope for any sustained, unjust hike in the prices of everyday items including food, that uses the hike in fuel prices as an excuse or cover,” Shafiquzzaman said. Their drives against such irrational and uncalled for price hikes in the capital’s kitchen markets would be reinforced and stepped up, said the DG of DNCRP.

Bangladesh Jatri Kalyan Samity has demanded the government to immediately repeal its decision of hiking fuel prices to ease the already-existing sufferings of the people created by the price hikes of essentials. The Samity made the demand through a press release published on Saturday. The release mentions last year’s fuel price hike by the government, saying that prices of Diesel and Kerosene were hiked by Tk 15 per litre, thus taking their prices to Tk 80 from Tk 65. Read: Commuters' misery mounts countrywide after fuel price hike Following the price hike, fares of public transport including buses and launches were hiked by 27 percent and 35 percent, respectively, which were much higher compared to the increase in fuel prices, the release read. The release added that due to hikes in fuel prices, costs of transportation will double, further increasing the prices of essentials. Industrial production will be hampered, pressure on imports will be created. While rising imports will affect the country’s economy, it’ll increase unemployment too. Prices of fuel in the international market are showing a downward trend. Raising fuel prices instead of lowering them to appease the International Monetary Fund (IMF) is unacceptable and anti-people. We urge the government to revert fuel prices to their previous rates immediately, the release concluded.  

Even after the latest hike in fuel prices in Bangladesh it is equal to India and comparatively lower than the other neighbouring countries, said Information Minister Hasan Mahmud. He made the remark Saturday at a seminar marking Sheikh Kamal’s 73rd birth anniversary at Dhaka University. Hasan Mahmud said the government provided a subsidy of Tk 53,000 crore or 6 billion dollar in fuel and power sector in the last fiscal year. Also read: Fuel price hike: Passengers suffer as buses go off roads in capital The neighbouring countries did not provide such subsidy and as a result they had to raise the fuel prices long before Bangladesh, he added.  “India has been selling diesel at Tk 114 per liter and octane at Tk 134-135 per liter which is the current price in Bangladesh. As our price was lower a huge amount of fuel was being smuggled to India through borders,” said the Information and Broadcasting Minister. He said in India’s Kolkata current diesel price is Tk 114 per liter (as  per local currency) while Tk 112 in allover India. “In China the diesel price is equal to Tk 118, in United Aram Emirates it is Tk 123, in Nepal it is Tk 127.82, in Indonesia Tk 138.24 and in Singapore Tk 189. 78,” said the minister. Regarding the increase in transport fares he said, if there are 70% passengers in a 50-seated bus the fare will increase by Tk 0.29 per kilometer only. Also read: Fuel price hike by govt just rubbing salt in wounds: BNP “Currently, a passenger has to pay Tk 1.80 per kilometer which will increase by Tk 2.90. Soon the government will hold meeting with all  concerned parties to ensure no one takes unfair opportunity of the fuel price hike,” said Hasan Mahmud.

The hike in fuel prices by the government on Friday has resulted in an acute transport crisis in Dhaka, causing untold sufferings to commuters as a large number of buses stayed off the roads on Saturday morning. In an abrupt move, the government increased the prices of diesel, octane and petrol by 42.5 percent, 51.7 percent and 51 percent respectively Friday night. Currently, diesel is being sold at Tk 114 per litre, octane at Tk 135 per litre and petrol at Tk 130 per litre. Transport owners decided not to operate buses following the government’s announcement, triggering transport shortage in the capital. Also read: Brace for bus & ferry fare hike Masuma Nasrin Rimi, a private employee working at a multinational company at Gulshan-1, waited in front of Purobi Bus Stand in Mirpur-12 for two hours but couldn’t catch a bus. She had to share a CNG-run auto-rickshaw with another office goer to reach Mohakhali Wireless Gate area.