Domestic air travellers to pay Tk 1,000-1,050 more on existing fares

Air travellers will have to pay an additional Tk 1,000 to Tk 1,050 on top of existing airfares for flights to domestic destinations.

Officials of US-Bangla Airlines and Novoair said they had no choice but to adjust fuel surcharges and taxes after the Bangladesh Energy Regulatory Commission (BERC) raised jet fuel prices by about 80 percent at the consumer level, citing volatility in the global market linked to the US-Israel war on Iran.

Under the revised structure, the price of jet fuel for domestic flights has been set at Tk 202.29 per litre, up from Tk 112.41. Meanwhile, jet fuel for international flights will cost $1.3216 (Tk 162.21) per litre, up from the current $0.738 (Tk 90.58).

For domestic flights, air operators will have to pay Tk 1,200 as duties and VAT, up from Tk 150, said Mofizur Rahman, secretary general of Aviation Operators Association of Bangladesh (AOAB).

Experts say the move will deal a blow to air travellers and the country’s airline industry.

After adjustment of surcharge and tax, a passenger will have to pay a minimum of Tk 5,849 for one-way travel to Sylhet, which was Tk 4,799 earlier, Mofizur, also managing director of Novoair, told The Daily Star.

He further said that of the minimum fare of Tk 5,849, airlines have to pay around Tk 1,754 to the government as tax and vat.

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80% jet fuel price hike may halt domestic flights, warns AOAB

Kamrul Islam, general manager (public relations) of US-Bangla Airlines, said they had no alternative but to update the rate of surcharge after BERC, in an unprecedented manner, increased the jet fuel price.

Meanwhile, the AOAB secretary general today called on Civil Aviation and Tourism Minister Afroza Khanam Rita at her office at the Secretariat to express their grave concern after the government increased the jet fuel price on Tuesday.

“We have categorically told the minister that there was no necessity for increasing the jet fuel price in the country at present. The government’s decision was illogical,” Mofizur told The Daily Star, following the meeting.

“We have also informed the minister that increasing the jet fuel price will badly impact the country’s aviation industry. We may even have to suspend the operation,” he added.

Mofizur said the Philippine government has decreased the rate of different kinds of aeronautical and non-aeronautical charges by 50 to 60 percent to support their local airlines industry.

“But, our government did not take any such measures,” he added.

Mofizur said the civil aviation minister has noted down AOAB’s points and assured that she will place their concern before the concerned ministries and departments.