Bangladesh has increased retail fuel prices by 10 to 15 percent, as the ongoing conflict in West Asia pushes global crude oil prices sharply higher and tightens international supply chains. The Energy Ministry announced the new rates late on Saturday, April 18, with petrol rising to 135 taka (approximately US$1.10) per litre from 116 taka, diesel set at 115 taka, and kerosene at 130 taka per litre.
Officials described the increase as unavoidable, pointing to a combination of surging crude prices, supply chain disruptions, and higher freight and insurance costs that have driven up import expenses in recent weeks. The pressures have been particularly acute following the outbreak of war involving Iran — now some seven weeks old — which has roiled energy markets and added uncertainty to global oil flows. Bangladesh, a South Asian nation of around 170 million people, relies heavily on imported fuel, making it acutely vulnerable to such external shocks.
The government had initially attempted to shield consumers through subsidies, delayed price adjustments, tighter stock controls, and efforts to diversify supply sources. However, authorities acknowledged those measures had become increasingly difficult to sustain as global prices continued to climb. Dhaka has already sought more than US$2 billion in external financing to secure energy imports, underscoring the strain the fuel bill is placing on the country's already stretched foreign exchange reserves.
On the ground, the situation has been worsened by panic-buying and hoarding, which officials say have caused long queues at filling stations across the country. The new prices are expected to add to inflationary pressures, particularly in transport and agriculture, where diesel is a critical input. Higher fuel costs typically feed through quickly into food prices and broader living costs, raising concerns for lower-income households who spend a large share of their earnings on essentials.
Bangladesh is far from alone in its predicament. A growing number of countries are adjusting domestic fuel prices in response to soaring global oil markets shaped by the West Asia conflict. For a developing economy already managing tight fiscal conditions, however, the balancing act between protecting consumers and sustaining import finances has become increasingly precarious.