Bangladesh Increases Fuel Prices Amid Rising Inflation and Energy Concerns
Bangladesh raises fuel prices second time in six weeks, inflation and costs set to rise

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Bangladesh has raised fuel prices for the second time in six weeks, with kerosene now costing 135 taka ($1.09) and petrol 140 taka ($1.14) per litre. This move aims to alleviate pressure on state finances amid rising inflation, which currently stands at 9.04%. The government is also considering increasing electricity tariffs.
- 01Kerosene prices increased to 135 taka ($1.09) and petrol to 140 taka ($1.14) per litre.
- 02Bangladesh imports about 95% of its fuel, primarily from the Middle East.
- 03Inflation in Bangladesh is currently at 9.04%, contributing to rising costs of essential goods.
- 04The government is exploring options for another increase in electricity tariffs amid energy security concerns.
- 05Bangladesh is negotiating a $2 billion loan from multilateral donors to address energy issues.
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On Monday, Bangladesh raised fuel prices for the second time in six weeks, with kerosene now priced at 135 taka ($1.09) per litre and petrol at 140 taka ($1.14). Diesel prices remained unchanged. This decision comes as the government faces financial pressure due to rising global fuel costs linked to the ongoing conflict in the Middle East, where Bangladesh sources about 95% of its fuel. The increase is expected to exacerbate inflation, which was recorded at 9.04% in April, impacting the cost of essential goods. Additionally, authorities are contemplating a rise in electricity tariffs. To mitigate energy security concerns, Bangladesh is seeking approximately $2 billion in loans from multilateral donors and is currently engaged in a $5.7 billion International Monetary Fund (IMF) program initiated in 2023. While major cities have avoided frequent power outages, rural areas continue to experience disruptions, especially during the peak summer season when electricity demand surges. The country is also pursuing various measures to enhance energy security, including bids for offshore natural gas exploration and the nearing operational readiness of its first nuclear power plant at Ruppur.
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The fuel price hike is likely to increase the cost of essential goods, further straining household budgets in Bangladesh.
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