Bangladesh Energy Regulator (BERC) increased Jet A-1 fuel price

The Bangladesh Energy Regulatory Commission (BERC) has implemented an upward adjustment in the price of Jet A-1 aviation fuel for December, marking the seventh consecutive monthly increase set by the regulator. The new rates, which became effective from midnight last Sunday, are expected to lead to an increase in air-ticket prices.

BERC's price revision is based on a formula that takes into account the average of Platts rates (international benchmark), the US dollar exchange rate, the Letter of Credit (LC) settlement rate of Bangladesh Petroleum Corporation (BPC), diesel price changes, and changes in transport charges.

This continuous monthly price fixing by BERC represents a shift from the previous practice where the state-run BPC unilaterally set the fuel price following instructions from the Energy and Mineral Resources Division (EMRD).

BPC typically imports around 600,000 tonnes of Jet A-1 fuel annually to meet the demands of both local and international airliners. Local petrochemical companies also contribute by refining condensate.

Market insiders warn that this latest price hike will likely make air-ticket prices dearer for both domestic and international passengers, as aviation fuel is a major component of airlines' operational costs.