Bangladesh's government raised the prices of four fuel types by 20 taka per litre, with increases of up to 17.4%, effective Monday, September 21, 2026, according to a decision issued by the Energy and Mineral Resources Division in the official gazette on September 20, as global oil prices and shipping costs rose.
Global prices and shipping costs rise
The Ministry of Power, Energy and Mineral Resources said international fuel prices had more than doubled since March 2026, alongside a sharp increase in shipping costs due to regional tensions.
The latest increase follows previous adjustments in April and June 2026. The government raised the price of diesel by 15 taka per litre to 115 taka on April 18, before increasing the prices of kerosene, octane and petrol by 5 taka per litre in June.
Losses of 228.76 billion taka
The state-owned Bangladesh Petroleum Corporation incurred losses of 228.76 billion taka, equivalent to $1.9 billion, between March and August 2026 as a result of the gap between import costs and domestic selling prices, according to ministry data.
The ministry expects the price increase to reduce the corporation's annual losses by about 100 billion taka, while easing pressure on foreign-exchange reserves and curbing fuel smuggling to neighbouring countries. The increase is expected to raise transport and production costs, adding to pressure on consumers and industrial sectors in the import-dependent economy.
