BERC Raises Bangladesh Jet Fuel Prices Sharply for April 2026

The Bangladesh Energy Regulatory Commission (BERC) has announced a significant adjustment to aviation fuel prices for April 2026, citing the ongoing war situation in the Middle East as the primary driver. The regulatory body issued a notification confirming the new rates, which took effect at midnight on April 7. For domestic flights, the price of jet fuel has been set at Tk 227.08 per litre, inclusive of duty and VAT.

This latest increase places immediate financial pressure on domestic carriers and is expected to translate into higher airfares for passengers. The adjustment represents a sharp escalation from the prices set just two weeks prior, highlighting the volatility of the global energy market and its direct impact on airline operating expenses. The move underscores the challenges airlines face in maintaining stable pricing and operational planning amidst frequent and substantial cost fluctuations.

Price Adjustment Details

According to the BERC order, the new domestic jet fuel price of Tk 227.08 per litre is a notable increase from the Tk 202.29 per litre price established on March 24, 2026. This represents a nearly 12.2% hike in just two weeks.

For international flights operated by both domestic and foreign airlines, the price has been adjusted to $1.48 per litre, excluding duty and VAT. This is up from the previous rate of $1.32 per litre, marking a similar percentage increase. These adjustments are part of BERC's mandate to revise aviation fuel prices monthly, factoring in international benchmarks, currency exchange rates, and local transportation costs.

Industry Impact and Context

The sharp rise in fuel costs directly affects the operational viability of domestic airlines such as Biman Bangladesh Airlines and US-Bangla Airlines. Fuel typically constitutes one of the largest expense categories for an airline, and such a sudden increase squeezes already thin profit margins. Consequently, the burden is likely to be passed on to passengers through increased ticket prices or higher fuel surcharges on routes originating from Bangladesh.

This trend is not isolated to the past month. Verified data shows that domestic jet fuel prices in Bangladesh have surged by over Tk 100 per litre since February 2026, when the price stood at Tk 95.12. This rapid escalation reflects a broader industry trend where geopolitical instability creates significant cost pressures. The situation mirrors historical precedents, most notably the 2022 global energy crisis triggered by the war in Ukraine. In 2022, airlines worldwide faced record-high jet fuel prices, which led to widespread fare hikes—a pattern that appears to be repeating due to the current Middle East tensions. The Aviation Operators Association of Bangladesh (AOAB) has previously voiced concerns that frequent and sharp price adjustments make it nearly impossible for airlines to conduct stable operational and financial planning.

Technical Analysis

This development indicates a period of heightened financial instability for the Bangladeshi aviation sector, directly tied to global geopolitical events. The data suggests that the monthly price adjustment mechanism, while intended to align with market realities, creates significant operational friction for airlines. Unlike more stable markets, carriers in Bangladesh must contend with double-digit percentage cost increases within a single month, complicating route profitability calculations and network planning. Historically, similar situations during the 2022 energy crisis demonstrated that such cost shocks are almost invariably passed on to consumers, potentially suppressing demand for air travel if fare hikes become too steep. The current trajectory accelerates the precedent set in 2022, solidifying the link between regional conflicts and the direct economic health of airlines operating in import-dependent fuel markets.

What Comes Next

Stakeholders in the Bangladeshi aviation market will be closely watching global energy prices and regional stability ahead of the next regulatory review. The Bangladesh Energy Regulatory Commission is expected to conduct its next monthly fuel price adjustment in May 2026. The direction of that adjustment will depend entirely on the trajectory of international oil prices and the geopolitical climate in the Middle East over the coming weeks.

Why This Matters

This significant fuel price hike is a critical development for the aviation industry in Bangladesh, directly impacting airline profitability and passenger affordability. It highlights the sector's vulnerability to external geopolitical shocks and global energy market volatility. For aviation professionals, it underscores the immense challenge of cost management in a high-inflation environment, while for travelers, it signals the strong likelihood of more expensive air travel in the near future.