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Zahid Hussain, former lead economist at World Bank’s Dhaka office, also supported the move, saying subsidies drained public funds and disproportionately benefited wealthier groups.

Selling fuel below international prices, he argued, creates losses for the Bangladesh Petroleum Corporation that ultimately fall on taxpayers.

“Keeping prices artificially low often leads to shortages, long queues and black markets, while price gaps with neighbouring countries encourage smuggling, meaning subsidised fuel may benefit consumers outside Bangladesh,” he said.

Failing to adjust prices would force the government to finance subsidies through higher taxes, borrowing or cuts in other spending, each carrying broader economic costs, he said.

Zahid suggested targeted support such as cash transfers or vouchers to shield vulnerable households, citing global examples where direct aid proved more effective.

He warned that global fuel costs may remain elevated, making delayed adjustments more painful and prolonging supply pressures.

Prof M Shamsul Alam, energy adviser to the Consumers Association of Bangladesh, criticised the decision to raise fuel prices as a “breach of trust”, saying the government had assured citizens that prices would not rise mid‑month.

“By violating their own rule of monthly adjustments, they have undermined credibility,” he said.

He argued that hoarding was evident, as supply increased immediately after the hike.

He also questioned why domestically produced petrol and octane were priced in line with imports.

“The BPC has long engaged in manipulations without accountability. Mismanagement has reached a point where the government itself is trapped, enabling profiteering by distribution companies,” he said.

According to him, distribution companies are using profits from consumers to expand assets and pay bonuses, while inflated costs are built into pricing. “Without addressing these issues, the government is repeating the mistakes of its predecessors,” he warned.

Prof Mustafizur Rahman, distinguished fellow at the Centre for Policy Dialogue, said the adjustment reflects mounting fiscal pressures and limited policy options.

He warned that the hike will erode purchasing power after prolonged inflation, while raising costs across transport, industry, and trade.

Fuel imports will continue to strain reserves, requiring careful management and external financing.

Agricultural economist Jahangir Alam Khan highlighted severe risks for the farm sector, especially during the ongoing Boro season when irrigation demand peaks.

He said higher diesel prices are raising irrigation costs, while shortages and queues at filling stations are disrupting crop growth in the northern districts.

“Fuel cost increases will raise costs across the agricultural value chain, from irrigation to harvesting, transport, and marketing, driving up food inflation,” he said.

He warned that reduced production could force rice imports, while fertiliser shortages caused by gas supply disruptions are compounding risks.

“Crops are now in critical growth stages, but fuel shortages are already drying fields. Higher kerosene prices will further strain rural households,” he added.

Transport fares on both roads and waterways are also set to rise in response to the fuel price hike. The Bangladesh Road Transport Authority held a meeting last evening to review public transport fares, though no new rates were finalised until the report was filed.

Transport owners’ associations indicated they may propose raising fares to Tk 4 per kilometre in cities and Tk 3.80 for long‑distance buses, which could mean up to a 64 percent increase in metropolitan fares.

Meanwhile, the Bangladesh Inland Waterway Passenger Transport Organisation has proposed a 36–42 percent hike in launch fares, including a higher minimum fare, signalling that commuters across both land and river routes will face significant additional costs.