Bangladesh has sharply increased the retail prices of its four major petroleum products, raising diesel, petrol, octane and kerosene by Tk 20 per litre. The revised prices came into effect from midnight on September 21, adding further pressure on consumers and businesses already facing higher energy and transportation costs.
Under the new rates, diesel has increased from Tk 115 to Tk 135 per litre, while petrol has gone up from Tk 140 to Tk 160. The price of octane has risen from Tk 145 to Tk 165 per litre, and kerosene has increased from Tk 135 to Tk 155.
The latest decision represents the third major fuel price increase in Bangladesh this year. Prices were previously raised in April, followed by another increase in June. The government had kept the rates unchanged during July, August and most of September before announcing the latest adjustment.
The April revision increased diesel by Tk 15 per litre, while octane, petrol and kerosene were raised by Tk 20, Tk 19 and Tk 18 respectively. In June, octane, petrol and kerosene were each increased by another Tk 5, while diesel remained unchanged at Tk 115 per litre.
The latest increase comes amid a sharp rise in international energy costs and higher expenses associated with fuel imports, transportation and insurance. The government has also cited growing pressure on fuel subsidies and concerns over cross-border fuel smuggling as factors behind the adjustment.
Bangladesh operates a system under which domestic fuel prices are periodically reviewed in relation to international oil prices, import costs, exchange-rate movements, taxes, duties and other distribution-related expenses. The latest increase therefore reflects a combination of international market pressure and domestic cost considerations.
The increase is expected to affect several parts of the economy because diesel is widely used for freight transportation, public transport, irrigation and other commercial activities. Higher fuel costs can increase transportation and production expenses, which may subsequently put pressure on prices of goods and services.
Economic analysts have warned that the latest increase could add to inflationary pressure and reduce household purchasing power. Businesses that depend heavily on fuel-powered transport and machinery are also expected to face higher operating costs.
The new rates also take all four major petroleum products to their highest retail prices in Bangladesh. Diesel, in particular, has seen a substantial increase over the course of 2026, rising from Tk 102 per litre at the beginning of the year to Tk 135 under the latest revision.
With the latest adjustment now in force, the impact is expected to be felt beyond fuel stations, particularly through transportation, logistics, agriculture and manufacturing costs. The extent to which the increase feeds into consumer prices will depend on fuel consumption, transport charges and wider market conditions in the coming weeks.
Journalist: Vijay Singh