Bangladesh cuts jet fuel rates for domestic, international flights

The Bangladesh Energy Regulatory Commission (BERC) has reduced the price of jet fuel (Jet A-1) used in aircraft in a notable shift after months of repeated hikes in aviation fuel costs.

The BERC announced the new pricing structure on Thursday and will come into effect at midnight. It will remain in force until further notice.

For domestic flights, the price of jet fuel has been cut from Tk 227.08 per litre to Tk 205.45, a reduction of Tk 21.63 per litre.

For international flights operated by local and foreign airlines, the tax- and VAT-free price has been revised downward from $1.48 per litre to $1.34.

The BERC said the adjustment is based on monthly revisions linked to Platts rates, as per its order issued on May 13, 2025.

The latest pricing reflects the average Platts rate of Jet A-1 between Apr 5 and May 4.

The commission added that fluctuations in the US dollar exchange rate used by Bangladesh Petroleum Corporation (BPC) for LC settlements, changes in diesel prices, and variations in coastal tanker and truck transportation costs were also taken into account.

A committee formed on May 25, 2025 to review jet fuel pricing analysed global Platts data, exchange rate movements, and transport costs for the same period before submitting its report to the commission on Thursday.

A public hearing on the report was also held that day, after which BERC finalised the revised rates for both domestic and international routes.

The new domestic price will apply at Shah Amanat International Airport in Chattogram, Shahjalal International Airport in Dhaka, Osmani International Airport in Sylhet, Jashore Airport and Cox’s Bazar Airport.

For international flights, the revised rate will apply at Shah Amanat, Shahjalal, Osmani and Cox’s Bazar airports for both local and foreign buyers.

The cut follows a series of sharp increases in recent months.

On Apr 7, domestic jet fuel prices were raised from Tk 202.29 to Tk 227.08 per litre, while international rates were set at $1.48.

Earlier, on Mar 24, domestic prices had jumped from Tk 112.41 to Tk 202.29, and international prices were raised from $0.74 to $1.32.

At the beginning of March, prices were again revised upward, while in January domestic jet fuel stood at Tk 94.93 per litre.

BERC had previously cited global volatility driven by Middle East tensions, the Iran conflict, and fears of disruption in supplies through the Strait of Hormuz as key reasons behind earlier spikes.

Aviation operators had described the earlier increases as “unjustified”.