ASIFUR RAHMAN

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.

According to the new rates, which came into effect at midnight, diesel will cost Tk 115 per litre, up from Tk 100; octane Tk 140, up from Tk 120; petrol Tk 135, up from Tk 116; and kerosene Tk 130, up from Tk 112.

The price hikes were announced in a notification of the Ministry of Power, Energy, and Mineral Resources.

Fuel prices have not seen a mid-month change since the automated adjustment mechanism was introduced to reflect global trends in 2024.

The government has made the move despite global prices trending downward. On Friday, Brent crude fell 9 percent to $90 a barrel, significantly down from late March, when it was close to $120. The government, however, had not hiked the price then.

Energy Division spokesperson Monir Hossain Chowdhury said, “The government tried to keep prices stable in the local market until the very last moment. But volatility in the global market made it impossible.

“Prices change from morning to afternoon. We tried to keep them stable, but the economy just cannot afford it at this moment,” Monir Hossain told The Daily Star last night.

He also mentioned that uncertainty over the Strait of Hormuz has disrupted imports.

Iran yesterday declared the strait closed, hours after opening it, saying it was responding to a continued US blockade of Iranian ports, calling it a violation of the ceasefire.

With Iran’s tight grip on the strait, a conduit for roughly one-fifth of global oil trade, importing crude oil and liquefied natural gas (LNG) from the Middle East has become a challenge for Bangladesh over several weeks.

On Friday, a 25,000-tonne octane shipment from Malaysia anchored at the Chattogram port, which is expected to be added to the national stock within a day.

With the latest shipment and ongoing local production, total stock of octane is expected to hit 55,500 tonnes, which is more than the country’s maximum storage capacity of 53,000 tonnes and enough to last 45 days.

The stock initially improved after a 26,000-tonne octane shipment arrived on April 9, the first consignment since the US-Israel war on Iran erupted on February 28.

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