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The Bangladesh Energy Regulatory Commission (BERC) has reduced the price of jet A-1 fuel, also known as aviation fuel, by 19.12 per cent to $0.6066 per litre for international flights and by 15.70 per cent to Tk 93.57 per litre for domestic flights from the country’s airports.
The commission fixed the jet A-1 fuel price downward following a late March public hearing after eight months of the previous hike.
The BERC chairman Jalal Ahmed announced the new jet A-1 fuel price at a press conference at the commission office at Karwan Bazar in the city on Tuesday. The new price will be effective from 12:00 am tonight.
State-run Bangladesh Petroleum Corporation (BPC) and its subsidiary Padma Oil Company Ltd (POCL) earlier in February had submitted proposals to fix the jet A-1 fuel price.
This is the first time that the energy regulatory commission fixed jet A-1 fuel price following public hearing.
Previously, the BPC would fix the price unilaterally following the instruction from the Energy and Mineral Resources Division (EMRD) under the Ministry of Power, Energy and Mineral Resources (MPEMR).
Separately, the BPC readjusted the storage and sale charge to Tk 4.04 per litre and the POCL readjusted the sale charge to Tk0.88 per litre.
The BPC usually imports around 600,000 tonne of jet A-1 fuel annually to meet the demands of both domestic and international flights being operated by local and international airlines.
Some local petrochemical company also produces jet A-1 fuel after refining condensate.
With the reduction in jet A-1 price, air ticket prices for both domestic and international-bound passengers should come down, market insiders said.
azizjst@yahoo.com