Bangladesh Slashes Fuel Subsidies Amid Global Oil Price Surge

Bangladesh has raised fuel prices by up to 17.4% as the government seeks to offset rising import costs driven by higher global oil prices.

The price hike, which took effect on Monday, is expected to raise transportation and production costs across the economy, adding to inflationary pressures at a time when industries are already grappling with an acute energy crunch.

The Energy Ministry said international fuel prices had more than doubled since March 2026, while freight charges had risen significantly due to regional instability. Under the new rates, diesel prices rose to 135 taka per litre from 115 taka, a 17.4% increase. Prices of 95-octane gasoline increased to 165 taka per litre from 145 taka, petrol rose to 160 taka from 140 taka, while kerosene increased to 155 taka from 135 taka.

The move drew concern from exporters, who said higher fuel costs would further squeeze manufacturers already battling energy shortages. Anwar-ul Alam Chowdhury, president of the Bangladesh Chamber of Industries, stated that the fuel price hike 'will hurt everyone, from common people to businesses and industries. It will fuel inflation, increase production and transportation costs, trigger job losses and force some businesses to downsize.'

The Energy Ministry said state-owned Bangladesh Petroleum Corporation incurred losses of 228.76 billion taka (US$1.9 billion) between March and August, with the latest price hike expected to cut annual losses by about 100 billion taka.