In a dramatic policy U-turn, the Bangladesh Energy Regulatory Commission (BERC) has suspended its decision to sharply raise jet fuel prices hours after announcing a steep increase, citing Middle East tensions.

The commission, at an emergency meeting on Wednesday, had initially decided to raise jet fuel prices by around 73 percent in a single move, triggering concern across the aviation sector.

According to the first notification, domestic jet fuel prices were set to rise from Tk 112.41 per litre to Tk 194.18 per litre—an increase of Tk 81.77 per litre. For international operations, prices were to increase from $0.7384 per litre to $1.2689 per litre, effective from midnight.

BERC had cited geopolitical instability, including Iran’s blockade of the Strait of Hormuz and escalating tensions in the Middle East, as key drivers behind the proposed price hike.

However, in a swift reversal, the commission issued a second notification within an hour, suspending the implementation of the revised prices.

BERC Assistant Director (Tariff-2) Raju Ahmed confirmed that the decision to adjust jet fuel prices has been put on hold.

Industry sources said the sudden move and rollback created uncertainty among airlines already grappling with volatile operating costs.

Officials indicated that the commission is likely to hold another meeting on March 25 to review the matter, with a fresh decision on jet fuel pricing expected thereafter.

The development underscores the sensitivity of fuel pricing in Bangladesh’s aviation sector, where jet fuel remains one of the largest cost components for airlines.