Bangladesh Increases Fuel Prices for June Amid Global Market Volatility

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The Bangladeshi government has announced an increase in fuel prices for June, citing global supply chain volatility triggered by ongoing conflicts in the Middle East. According to a notification issued Sunday by the Ministry of Power, Energy and Mineral Resources, the price adjustments for petrol, octane, and kerosene will take effect at midnight.

Under the new pricing structure, petrol will rise to 140 taka per liter from 135 taka, while octane will increase by 5 taka to 145 taka per liter. Kerosene will also see a 5-taka hike, reaching 135 taka per liter. The price of diesel, however, remains unchanged at 115 taka per liter.

These adjustments follow a period of price stability in May, after an initial increase in mid-April. Since March 2024, the government has transitioned to an automated fuel pricing formula intended to align domestic costs with global market fluctuations. Under this mechanism, the government reviews the previous month’s import costs to adjust retail rates every thirty days.

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The energy sector has faced significant pressure since the escalation of hostilities in the Middle East earlier this year. The regional instability initially disrupted supply chains, leading to widespread concerns and long queues at filling stations. While the situation stabilized following the adjustments made in late April, authorities continue to monitor the impact of global market trends on domestic supply.

While the Ministry of Power, Energy and Mineral Resources maintains authority over the pricing of diesel, kerosene, petrol, and octane through executive orders, other fuels—including jet fuel and furnace oil used in power plants—are regulated separately by the Bangladesh Energy Regulatory Commission. The latest price hike marks another chapter in the volatility that has defined the domestic fuel market since the onset of the Russia-Ukraine war, which previously saw record-high price increases in August 2022.