The government has increased domestic fuel prices for December to align with rising rates on the international market. Prices of diesel, kerosene, petrol and octane have each been raised by Tk 2 per litre.
Under the revised rates, diesel will cost Tk 104 per litre, kerosene Tk 116, petrol Tk 120, and octane Tk 124.The Energy and Mineral Resources Division issued a notification on Sunday night. T
he new prices take effect from Monday on December 1, 2025.
Officials said the government introduced an automatic fuel-pricing mechanism in March last year to keep domestic rates in line with global market movements. Since then, new fuel prices have been announced monthly.
In addition to petroleum fuels, the Bangladesh Energy Regulatory Commission (BERC) also sets monthly prices for liquefied petroleum gas (LPG) based on international market trends.According to Bangladesh Petroleum Corporation (BPC), annual demand for fuel oil is currently about 7.5 million tonnes.
Of this, diesel accounts for roughly 75 percent, with the remaining demand met by petrol, octane, kerosene, jet fuel, furnace oil and other petroleum products. Diesel is primarily used for irrigation pumps, transportation and generators.
BPC typically profits from petrol and octane sales, while its overall profit or loss depends largely on diesel.
Previously, BPC regularly adjusted the prices of jet fuel used in aviation and furnace oil used in power plants. These duties are now handled monthly by BERC, while diesel, kerosene, petrol and octane prices are set by the Energy and Mineral Resources Division.
The division noted that monthly fuel price adjustments are also standard practice in neighbouring India and many developed countries.
The automatic pricing mechanism was introduced on 29 February last year as part of conditions attached to an International Monetary Fund (IMF) loan. Under this system, domestic fuel prices rise or fall in line with global market fluctuations.