The government has clarified its position following the recent upward adjustment in fuel prices, stating that the decision was driven by severe pressures in the international energy market. Electricity and Energy Adviser Iqbal Hasan Mahmud explained that despite global oil prices nearly doubling compared to the period before the outbreak of the current geopolitical conflicts, the authorities have implemented only a limited price revision in order to protect consumers.
Speaking to journalists at the Secretariat in the capital, he noted that global instability has significantly increased the cost of fuel imports. The escalation in international crude oil prices, largely influenced by ongoing conflicts and heightened tensions in the Middle East, has placed considerable strain on national import expenditures. According to him, the country’s additional spending on fuel imports has reached the equivalent of approximately 200 crore US dollars, creating substantial fiscal pressure.
He further added that the rising import costs have compelled the government to reassess its budgetary allocations, including increased subsidy burdens. While efforts had been made over an extended period to maintain stable domestic fuel prices, he acknowledged that it has become increasingly difficult to fully absorb external shocks without adjustments.
The government emphasised that the recent price revision was carefully calibrated to reflect market realities while minimising the impact on citizens. Officials stressed that although the increase is unavoidable, it has been kept significantly lower than international market fluctuations. The intention, they said, is to maintain a balance between economic stability and affordability for the general population.
Following the new adjustment, fuel prices per litre have increased by an estimated 15 to 20 taka across major categories, including diesel, kerosene, petrol, and octane. The revised rates came into effect immediately.
Summary of Fuel Price Adjustment
| Fuel Type | Previous Price (per litre) | New Price (per litre) | Increase |
|---|---|---|---|
| Diesel | Not specified | Revised new rate | 15–20 taka |
| Kerosene | Not specified | Revised new rate | 15–20 taka |
| Petrol | Not specified | Revised new rate | 15–20 taka |
| Octane | Not specified | Revised new rate | 15–20 taka |
Officials reiterated that even after the adjustment, domestic fuel prices remain lower than prevailing international levels due to continued government subsidies. They also highlighted longer-term policy objectives, including reducing import dependency, strengthening energy security, and improving efficiency within the fuel sector.
Energy sector analysts suggest that until global oil markets stabilise, such pricing pressures may persist. However, they acknowledge that the government appears intent on limiting the broader impact on household expenses and overall economic activity.