Govt raises fuel prices, keeps diesel unchanged

The government has increased the prices of octane, petrol and kerosene by Tk 5 per litre, citing global market volatility and mounting subsidy costs, while leaving diesel prices unchanged to protect consumers and key sectors such as agriculture and transport.

Speaking to reporters at the Secretariat on Monday, State Minister for Power, Energy, and Mineral Resources Anindya Islam Amit said the adjustment was necessary to align domestic fuel prices with international market trends and ease pressure on public finances.

Under the revised rates, octane now costs Tk 145 per litre, up from Tk 140, while petrol has risen to Tk 140 from Tk 135 and kerosene to Tk 135 from Tk 130. The new prices took effect on June 1. Diesel, which accounts for roughly 66 percent of the country's fuel consumption, remains unchanged due to its importance for transportation and agricultural production.

Amit said ongoing geopolitical tensions in the Middle East had created uncertainty in global energy markets, forcing the government to make what he described as an "unpleasant but necessary" decision. He added that fuel prices would be reduced promptly if international oil prices decline significantly.

Responding to criticism over the increase, the minister noted that the government had previously absorbed much of the impact of soaring global fuel prices through subsidies, creating a substantial fiscal burden. Gradual price adjustments, he said, are now needed to maintain economic stability and sustain social safety-net programmes.

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He also dismissed speculation about an imminent electricity tariff hike, saying any future adjustment would be determined by the Bangladesh Energy Regulatory Commission through the legally mandated public hearing process.