Airlines slam jet fuel hike decision
Desk Report
| Published: Tuesday, March 24, 2026
Photo: Collected
Bangladesh’s aviation operators today strongly protested the sudden jet fuel price hike to Tk 202.29 per litre, warning of severe financial strain and possible suspension of domestic flights if the decision remains in force.
In a statement, The Aviation Operators Association of Bangladesh (AOAB) termed the nearly 80 percent increase in Jet A-1 prices as “unjustified and detrimental” following the Bangladesh Energy Regulatory Commission’s (BERC) latest move.
The decision, effective from midnight, comes just days after BERC suspended a similar hike amid industry backlash and geopolitical uncertainty linked to Middle East tensions.
Under the revised rates, domestic jet fuel prices have surged from Tk 112.41 to Tk 202.29 per litre, while international rates have jumped to US$1.3216 per litre from around US$0.7385.
AOAB Secretary General and NOVOAIR Managing Director Mofizur Rahman questioned the rationale behind the hike.
“The relevant ministry has already confirmed that there is no shortage of fuel. Around 25 oil tankers arrived in the past 22 days, and fuel was purchased at earlier prices. Global oil prices have also declined, so such an increase is not justified,” he said.
He further noted that Bangladesh’s price hike far exceeds regional trends, with India and Nepal keeping prices unchanged, while Pakistan and the Maldives recorded significantly lower increases.
The statement said that AOAB believed that if implemented, the decision will put severe financial pressure on airlines and impose additional costs on domestic passengers.
“The increase in jet fuel taxes will further escalate operational costs, hindering the sustainable growth of the aviation industry. It may even lead to a complete suspension of domestic flight operations,” read the statement.
The association has urged the government to urgently review the decision and adopt a realistic pricing mechanism to ensure sector stability.
Industry leaders warned the move could sharply raise airline operating costs, push up airfares and threaten the viability of domestic routes.