Jet fuel sees price hike

The Bangladesh Energy Regulatory Commission (BERC) on Monday increased the price of jet A-1 fuel -- commonly used in aircraft -- for both domestic and international flights.

For international flights, the price was raised by 5.52 per cent to $0.64 per litre, while for domestic flights, it went up by 4.75 per cent to Tk 98.02 per litre. The new rates took effect from 12:00am on Monday night.

Market insiders say the new price hike could lead to higher airfares for both domestic and international travellers.

In a press statement, BERC said the new price was set based on several factors -- including global fuel price trends (Platts rate), the dollar exchange rate, LC settlement rates by state-run Bangladesh Petroleum Corporation (BPC), changes in diesel prices, and transport costs between June 5 and July 4.

The commission held a public hearing at its office before making the price adjustment.

This is the second time BERC has adjusted jet fuel prices through a formal hearing process. Previously, BPC alone used to set the prices following directives from the Energy and Mineral Resources Division under the Ministry of Power, Energy and Mineral Resources.

In May, BERC had lowered jet fuel prices by 19.12 per cent to $0.61 litre for international flights and by 15.70 per cent to Tk 93.57 per litre for domestic flights.

Bangladesh imports around 600,000 tonnes of jet A-1 fuel annually, mainly to meet the needs of both local and international airlines. Some local companies also produce jet fuel by refining condensate.

azizjst@yahoo.com