The Bangladesh Energy Regulatory Commission (BERC) has announced a significant reduction in jet fuel prices, bringing welcome relief to airlines and the aviation sector.
According to a statement issued by the commission, the price of jet fuel for domestic flights has been slashed from Tk111 to Tk93.57 per litre. For international flights, the price has been cut from $0.75 to $0.6066 per litre. The new rates, which include duty and VAT for domestic flights and are duty- and VAT-exempt for international flights, will come into effect from Tuesday midnight.
In addition to the price cut, the commission also revised related distribution charges. The storage and distribution charge for Bangladesh Petroleum Corporation (BPC) has been set at Tk4.04 per litre. Meanwhile, Padma Oil Company Limited will receive a revised marketing charge of Tk0.88 per litre for distributing Jet A-1 fuel.
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These revisions follow a proposal submitted by BPC on January 20 under the Bangladesh Energy Regulatory Commission Act 2003. The proposal aimed to restructure aviation fuel pricing with transparency and market stability in mind. Subsequently, Padma Oil submitted its updated marketing charge proposal to the commission on February 18.
The decision is expected to reduce operational costs for airlines and potentially lower airfare on domestic and international routes, providing relief to passengers amid broader economic pressures.
