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The Bangladesh Energy Regulatory Commission (BERC) has raised the price of aviation fuel for both domestic and international flights in October, marking the fifth consecutive monthly adjustment.
The increase is expected to make air travel costlier for passengers.
The price of jet A-1 fuel has been increased by 3.34 per cent to US$0.6545 per litre for international flights and by 3.33 per cent to Tk 99.29 per litre for domestic flights from the country's airports, compared to the previous month's rates.
The commission adjusted the prices upward after considering several factors, including the average Platts rates, the exchange rate of the US dollar, the settlement rate of letters of credit (LCs) opened by the state-run Bangladesh Petroleum Corporation (BPC), changes in diesel prices, and variations in transportation costs for tank lorries and coastal tankers.
The revised prices took effect from midnight on Wednesday.
With the October adjustment, BERC has now been setting jet A-1 fuel prices for five consecutive months.
Previously, the state-owned BPC determined the prices unilaterally under directives from the Energy and Mineral Resources Division (EMRD) of the Ministry of Power, Energy and Mineral Resources (MPEMR).
The BPC typically imports around 600,000 tonnes of jet A-1 fuel annually to meet the demand for both domestic and international flights operated by local and foreign airlines.
Some local petrochemical firms also produce jet A-1 fuel by refining condensate.
Industry insiders said the latest price hike is likely to push up airfares for both domestic and international
passengers.
Azizjst@yahoo.com