ASIFUR RAHMAN

The government has decided to keep domestic fuel prices unchanged this month by absorbing rising import costs through heavy subsidies.

The decision has been taken to cushion consumers from the global energy shock amid escalating tensions in the Middle East, now in its fifth week.

Diesel will be sold at Tk 100 per litre, while octane and petrol prices will remain at Tk 120 and Tk 116 per litre, according to a gazette issued by the Ministry of Power, Energy, and Mineral Resources yesterday.

With this, fuel prices remain unchanged for the third consecutive month.

To achieve this, the government spent over Tk 5,000 crore in subsidies in March alone, risking intensifying fiscal pressure and widening the gap with international market rates.

At the same time, the authorities have also been working to curb panic buying and have intensified drives against fuel hoarding nationwide, which the government blames for the shortages.

The move comes as import costs continue to climb due to geopolitical tensions disrupting supply chains, particularly in the Middle East -- Bangladesh’s primary fuel sourcing region.

Officials say the government is deliberately holding prices steady to avoid triggering inflationary pressure on transport and essential commodities.

Ministry analysis shows the import‑adjusted cost of diesel has risen to about Tk 198 per litre, while the retail price is Tk 100. For octane, the cost stands at Tk 150.72 per litre compared to a retail price of Tk 120.

In March alone, this translated into an estimated subsidy burden of roughly Tk 4,231 crore for diesel and Tk 779 crore for octane.

A day earlier, Energy Minister Iqbal Hassan Mahmood Tuku said the government may need to spend up to Tk 16,045 crore in subsidies by June to sustain the current pricing structure.

The latest move also signals a shift from the earlier adjustment trend.

In January, the government reduced fuel prices by Tk 2 per litre across diesel, petrol, octane, and kerosene, in line with easing global prices at the time.

World Bank data show Brent crude oil was about $71.1 per barrel before the war, but it surged past $100 by March 10 and is currently trading around $120.

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