Fuel oil prices have been increased yet again. The prices of all four types of fuel—diesel, kerosene, petrol, and octane—have been raised by BDT 20 per liter. The new prices became effective today, Monday (September 21).
According to the new rates, diesel is now priced at BDT 135 per liter, kerosene at BDT 155, petrol at BDT 160, and octane at BDT 165. This marks the highest fuel oil price in the country’s history.
**Prices Rose by BDT 35-45 During BNP Government’s Tenure**
When the BNP government took office on February 17, the prices of diesel, kerosene, petrol, and octane were BDT 100, BDT 112, BDT 116, and BDT 120 respectively. Following the latest increase, diesel prices have risen by BDT 35, kerosene by BDT 43, petrol by BDT 44, and octane by BDT 45 compared to February.
This means that in the past seven months, the prices of the four types of fuel oil have increased by BDT 35 to BDT 45 per liter.
Earlier, on April 19, the price of diesel was increased by BDT 15, kerosene by BDT 18, petrol by BDT 19, and octane by BDT 20. At that time, prices stood at BDT 115, BDT 130, BDT 135, and BDT 140 respectively.
Subsequently, in June, the prices of kerosene, petrol, and octane were increased by another BDT 5 each. However, the price of diesel remained unchanged. The prices set in June remained effective until the beginning of July, August, and September.
**Impact of International Market Prices**
A gazette notification issued by the Energy and Mineral Resources Division on Sunday stated that due to the ongoing war in the Middle East, international market fuel oil prices and freight charges have significantly increased since March. This situation continues to persist.
The notification further stated that despite international fuel prices more than doubling, the government did not adjust domestic prices proportionally in the public interest. This resulted in a loss of BDT 22,875.66 crore for the Bangladesh Petroleum Corporation (BPC) from March to August.
The rising crude oil prices and transportation costs in the international market due to the Middle East war had led to a significant price hike in April as well. At that time, Brent crude prices had surged to nearly USD 120 by the end of March.
**Potential Impact on Transport and Daily Necessities**
The increase in fuel prices is likely to raise transportation costs, agricultural production expenses, and the cost of goods transportation. There is also an apprehension that this will impact the market for daily essential commodities.
Specifically, the rise in diesel prices will increase operational costs for buses, trucks, cargo vehicles, and various other transport sectors. The agricultural sector is also likely to face higher costs for irrigation and the transportation of agricultural products.
**Prices Increased Up to 142 Percent During Awami League Government**
Over the 15 and a half years of the Awami League government, from 2009 to July 2024, the prices of diesel and kerosene increased from BDT 44 to BDT 106.75 per liter, representing an increase of nearly 142 percent.
During the same period, petrol prices rose from BDT 74 to BDT 122, and octane prices from BDT 77 to BDT 127. In both cases, the price increase rate was approximately 65 percent.
Citing international market prices, import costs, and subsidy pressures, fuel prices were increased several times during that period. The most significant price hike occurred on August 5, 2022, when the prices of all four types of fuel were raised by 42 to 51 percent. Octane prices increased by 51.7 percent and petrol by 51.1 percent.
Prior to that, in November 2021, diesel prices were raised by BDT 15 in one go. Later, in March 2024, an automatic monthly pricing mechanism was introduced to align with international market prices.
**Adjustments During Interim Government**
During the interim government, which came to power in August 2024, fuel oil prices were adjusted several times to align with international market prices.
In September of that year, octane and petrol prices were reduced by BDT 6, and diesel and kerosene by BDT 1.25 each. In February 2025, the prices of all four types of fuel were increased by BDT 1 each, but in June, diesel prices were reduced by BDT 2, and petrol and octane prices by BDT 3 each.
Following this, in December, the prices of all four types of fuel were increased by BDT 2 per liter. In January and February 2026, the prices of all four types of fuel were further reduced by BDT 2 per liter in two separate adjustments.
After the last adjustment in February, diesel was priced at BDT 100, kerosene at BDT 112, petrol at BDT 116, and octane at BDT 120. With the new prices effective from Monday, these fuel oils have now reached their highest levels.