Asifur Rahman

A sharp increase in fuel prices -- one that will ripple through every layer of the economy -- signals that the government has reached the limits of its fiscal endurance.

The government yesterday increased the price of 12kg of liquefied petroleum gas (LPG) to Tk 1,940, its second hike this month, with consumers fearing that the retail price in reality could climb even higher.

Queues at filling stations across Dhaka yesterday resembled the early-2000s “Snake” game, with lines of octane- and petrol-powered vehicles snaking around pumps, spilling onto surrounding roads, and at times looping back to and past their starting points.

The government last night raised fuel prices to record highs, increasing diesel by Tk 15 per litre, octane by Tk 20, petrol by Tk 19, and kerosene by Tk 18.

Bangladesh’s octane stock is set to reach near full storage capacity after a fresh consignment of 25,000 tonnes anchored at the outer anchorage of Chattogram Port last night.

Fresh 25,000‑tonne consignment pushes stock to 55,500 tonnes against 53,000‑tonne capacity

The government is preparing to raise bulk and retail electricity tariffs, citing an “unsustainable surge in subsidies” amid the ongoing fuel crunch triggered by the US-Israel war on Iran.

The government yesterday said it has secured enough fuel supplies for this and next month.