The aviation fuel price used by airlines in Bangladesh has been increased for March, with regulators citing higher international market rates and currency fluctuations.
The country’s energy regulator, Bangladesh Energy Regulatory Commission (BERC), announced on Sunday that the new price for Jet A-1 aviation fuel will take effect from midnight.
Under the revised rates, the price of Jet A-1 used on domestic flights has been set at Tk 112.41 per litre, including taxes and value-added tax. This represents an increase of Tk 17.29 taka compared with the previous month.
In February, the fuel used for domestic routes had been priced at Tk 95.12 per litre, up slightly from Tk 94.93 previously.
For international flights operated by both local and foreign airlines, the regulator set the tax-exempt price of Jet A-1 at $0.7384 per litre, compared with $0.6257 per litre last month.
According to BERC, the adjustment reflects the average global Platts benchmark price recorded between 5 February and 4 March, as well as changes in the exchange rate of the US dollar used for settling import letters of credit.
The regulator also said it considered fluctuations in diesel prices and changes in transportation costs for coastal tankers and fuel tank lorries when determining the new rates.
The price revision is part of a monthly fuel adjustment mechanism introduced under the Bangladesh Energy Regulatory Commission Act 2003. The system allows aviation fuel prices to be updated regularly based on international market conditions, currency movements and logistics costs.
Officials said a special committee formed by BERC last year analyses global price data, exchange rates and domestic cost factors before recommending monthly adjustments to the commission. The latest recommendation followed a review and hearing before the regulator approved the new rates.