Bangladesh Raises Fuel Prices by Tk 20 Per Litre

The Government of Bangladesh increased the retail prices of diesel, kerosene, octane, and petrol by Tk 20 per litre effective September 21, 2026. Under the new rates, diesel costs Tk 135, kerosene Tk 155, octane Tk 165, and petrol Tk 160 per litre. This adjustment marks the third increase this year and the largest since August 2022, with liquid fuel prices rising nearly 36 percent since January.

The Ministry of Energy of Bangladesh and the Ministry of Power, Energy and Mineral Resources attributed the hike to surging global oil prices—with Brent crude exceeding $100 per barrel—and increased shipping costs linked to conflict in West Asia and a U.S. war on Iran. Officials stated the move was necessary to reduce the annual losses of the state-owned Bangladesh Petroleum Corporation, which lost approximately Tk 228.75 billion between March and August. The government expects the increase to reduce annual losses by Tk 100 billion and curb fuel smuggling to neighboring countries.

The price hike triggered immediate increases in freight charges for vegetables and port transport, including a Tk 5,000 to Tk 8,000 increase for trucks at the Benapole land port. The Bangladesh Road Transport Authority has proposed fare hikes for city and intercity buses. Economists and political groups, including the Socialist Party of Bangladesh, have criticized the move, warning it could lead to stagflation, higher food prices, and increased joblessness for low-income citizens.