Jet fuel prices rise 117% in 18 months
April 16, 2022 9:23:09 PM
April 16, 2022 10:42:53 p.m.
Fuel prices for planes have risen 117% in a year and a half, prompting hikes in ticket prices and raising concerns among the country’s airlines.
Jet fuel prices started to climb in October 2020 when the price was Tk 46 per litre. It has increased by 54 Tk, or 117%, to 100 Tk since then.
According to the Bangladesh Petroleum Corporation (BPC), authorities increased fuel prices 14 times during the period, while diesel and kerosene prices increased only once at the consumer level, reports bdnews24 .com.
In addition to this, fuel prices on the international market have increased due to the war in Ukraine, the effects of which are felt in Bangladesh.
Describing the trend as illogical, market insiders said that even when different countries provided subsidies to the aviation sector to recover from the COVID crisis, fuel prices in Bangladesh continued to rise.
A local airline official said the aviation industry could now turn around and make up for the losses suffered during Covid-19.
“We need to stand with this sector now. Otherwise, we will fall far behind foreign airlines,” the official said.
According to airline data, Dhaka-Jashore or Dhaka-Syedpur flights used to cost around Tk 3,000 before the pandemic, but now it is impossible to buy a ticket for less than Tk 4,000 on these routes.
Reflecting on a similar rise in fuel prices in 2008, an advisor to ATM Nazrul Islam, Aircraft Owners Association of Bangladesh, said: “Domestic flight operations are going through a tough time in such situations and with the ‘Eid-ul-Fit on the horizon, they will really struggle.”
“To cope with the crisis, airlines are operating more flights than usual at this time, but it is the passengers who ultimately pay.”
BPC officials said the price fluctuation depends on the international market, as jet fuel is entirely imported.
Kazi Mohammad Mozammel Haque, chief financial officer of BPC, said they still had to adjust to rising prices in the global market. The government does not offer any subsidies for kerosene. Still, prices in Bangladesh are slightly lower than in markets in Kolkata and neighboring areas.
According to the International Air Transport Association, jet fuel prices have increased by 128.5% over the past year, and they have increased the least in the regions of Asia and Oceania – 95%, while North America saw the biggest increase – 157.8%.