The government of Bangladesh is making efforts to keep fuel prices stable despite continued pressure from the international energy market and the ongoing conflict in the Middle East.
Global oil markets have experienced significant volatility due to the conflict involving Iran, Israel and the United States. Disruptions and security concerns surrounding the Strait of Hormuz have affected the movement of crude oil and other energy supplies also creating uncertainty in the global market.
As Bangladesh depends heavily on imported petroleum products and crude oil, changes in international prices, transportation costs, insurance expenses and import costs have a direct impact on the domestic fuel market.
However, the government has taken measures to reduce the immediate burden on consumers. Following a Tk.20-per-litre increase in September, the government decided to keep fuel prices unchanged throughout October.
Under the current pricing structure, diesel is being sold at Tk.135 per litre, octane at Tk.165, petrol at Tk.160 and kerosene at Tk.155. The prices have remained effective from October 1.
The government has also pointed out that domestic fuel prices have not always been increased in line with international market prices. Bangladesh Petroleum Corporation (BPC) incurred substantial losses while maintaining comparatively lower domestic prices during periods of high international fuel costs. According to government figures, BPC incurred losses of around Tk.22,876 crore between March and August 2026.
The recent rise in global fuel prices has been linked to supply disruptions and uncertainty caused by the Middle East conflict. Although oil shipments through the Strait of Hormuz have partially recovered, flows remain below pre-conflict levels, keeping the international market under pressure.
Against this backdrop, the government is attempting to balance two competing pressures: protecting consumers from sudden increases in fuel prices while also managing the rising cost of fuel imports and the financial burden on the state-owned petroleum corporation.
Officials and market observers say that the future direction of domestic fuel prices will largely depend on developments in the international oil market, the security situation in the Middle East and the cost of importing petroleum products.
For now, the government's decision to keep fuel prices unchanged in October is intended to provide some stability to consumers and the transport sector amid continued uncertainty in the global energy market.
