Aircraft fuel prices have increased by 117 per cent in one and a half years, causing hikes in ticket prices and triggering concerns among the airlines in the country.
The jet fuel prices began climbing in October 2020 when the price was Tk 46 per litre. It has increased by Tk 54, or 117 per cent, to Tk 100 since then.
According to Bangladesh Petroleum Corporation (BPC), authorities hiked fuel prices 14 times in the period, while diesel and kerosene prices rose only once at the consumer level, reports bdnews24.com.
On top of that, fuel prices in the international market rose on the back of the war in Ukraine, the impacts of which are being felt in Bangladesh.
Describing the trend as illogical, market insiders said even when different countries provided subsidies to the aviation sector to recover from the COVID crisis, fuel prices in Bangladesh kept rising.
An official of a local airline said the aviation industry can now turn around and make up for the losses suffered during the Covid-19.
“We need to stand by this sector now. Otherwise, we will fall far behind the foreign airlines,” the official said.
According to data from the aviation companies, Dhaka-Jashore or Dhaka-Syedpur flights would cost Tk around 3,000 before the pandemic, but it is now impossible to buy a ticket under Tk 4,000 on these routes.
Reflecting on a similar hike in fuel prices back in 2008, an adviser to Bangladesh Aviation Owners Association ATM Nazrul Islam said, “The domestic flight operations are having a difficult time in such situations and with the Eid-ul-Fit on the horizon, they will really struggle."
“To cope with the crisis, the airlines operate more flights than usual in such period, but it is the passengers who ultimately pay.”
BPC officials said the price fluctuation depends on the international market as the jet fuel is entirely imported.
Kazi Mohammad Mozammel Haque, BPC director of finance, said they still have to adjust to price rises in the global market. The government offers no subsidies for jet fuel. Yet the prices in Bangladesh are somewhat lower than markets in Kolkata and nearby areas.
According to the International Air Transport Association, jet fuel prices rose 128.5 per cent over the past year, and it climbed the least in the Asia and Oceania regions - 95 per cent, while North America saw the biggest spike - 157.8 per cent.