80% jet fuel price hike may halt domestic flights, warns AOAB
The Aviation Operators Association of Bangladesh (AOAB) has expressed deep concern over the Bangladesh Energy Regulatory Commission’s (BERC) decision to raise jet fuel (Jet A-1) prices by around 80 percent, describing the move as harmful and unjustified for the country’s aviation sector.
The hike could lead to a situation where flight operations on domestic routes may be completely suspended, AOAB said in a statement today.
For all latest news, follow The Daily Star's Google News channel. AOAB Secretary General Mofizur Rahman said the relevant ministry had already stated there was no shortage of fuel in the country.
“Around 25 oil-carrying vessels have arrived in the country in the past 22 days and the oil was purchased at predetermined prices. At the same time, oil prices have declined in the international market in recent times. In this context, increasing jet fuel prices on such a large scale based on the apprehension of future price hikes is not justified,” he said.
He further noted that, compared to neighbouring countries, the increase in jet fuel prices in Bangladesh is unusually high.
At a BERC meeting held today, the price of Jet A-1 was revised considering the average Platts rates from March 5 to March 22, the revised premium for January–June 2026, the US dollar exchange rate, and the unchanged price of diesel.
Under the new decision, the price of jet fuel for domestic flights has been increased from Tk 112.41 per litre to Tk 202.29 per litre. For international flights, the price has been raised from $0.7385 per litre to $1.3216 per litre.
While India and Nepal have kept jet fuel prices unchanged, Pakistan increased prices by 24.49 percent and the Maldives by 18.54 percent, whereas the increase in Bangladesh is around 80 percent, AOAB said in its statement.
If implemented, the decision will put airlines under severe financial pressure and impose additional costs on passengers travelling on domestic routes, the association said. It added that the increase in taxes on jet fuel would further raise overall operating costs, hindering the sustainable development of the aviation industry.
AOAB urged the government to urgently review the decision and set a realistic and acceptable price to ensure stability and growth in the country’s aviation sector.
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