The Bangladesh government has decided not to raise retail fuel prices for April, keeping rates unchanged for a second straight month despite sharp volatility in the global energy market triggered by the widening conflict in the Middle East.
According to an official order issued মঙ্গলবার by the Power, Energy and Mineral Resources Ministry, fuel prices at the consumer level will remain at Tk 100 per litre for diesel, Tk 112 for kerosene, Tk 116 for petrol, and Tk 120 for octane. The same rates were in effect in February and March.
The decision comes even as international fuel prices have more than doubled in recent weeks, putting significant pressure on Bangladesh’s import costs. Officials said that under the current market reality, diesel imported at present rates would cost nearly Tk 200 per litre, far above the local selling price. As a result, the government is expected to absorb a massive subsidy burden to keep prices stable.
Sources at the Bangladesh Petroleum Corporation said the price gap could force the government to provide around Tk 5,000 crore in subsidy in a single month. Energy Minister Iqbal Hasan Mahmud (Tuku) told parliament earlier that the international price of diesel had risen by 98 percent in one month, with the current import cost standing at Tk 198 per litre. He added that although octane is being sold at Tk 120 per litre, the government’s actual cost is Tk 150.72.
Bangladesh introduced an automatic fuel pricing mechanism in March 2024, under which monthly domestic rates are supposed to be adjusted in line with import costs from the previous month. However, the latest decision suggests the government has opted to shield consumers from a steep price shock despite the formula.
Under existing policy, jet fuel and furnace oil prices are set by the Bangladesh Energy Regulatory Commission, while the prices of diesel, kerosene, petrol, and octane are fixed by executive order from the Energy and Mineral Resources Division.
The unchanged pricing is likely to bring short-term relief to transport operators, businesses, and consumers, but it also raises questions about how long the government can sustain such heavy subsidies if global oil prices remain elevated.