Bangladesh raises fuel prices by up to 17.4% as energy costs rise

Bangladesh has increased retail prices for major petroleum products by 20 taka per litre, with the new rates taking effect on September 21. Reuters reported that diesel rose 17.4% to 135 taka per litre, while petrol increased to 160 taka. Bangladeshi media separately reported the same 20-taka increase across diesel, kerosene, octane and petrol. Government officials linked the decision to higher global oil and freight costs, losses at the state-run Bangladesh Petroleum Corporation and pressure on foreign exchange. Officials have also cited the risk of fuel smuggling as a factor in the pricing decision. The higher pump prices add to cost pressures for households, transport operators and businesses in an economy that depends heavily on imported energy. The size of the wider inflationary impact will depend on how transport, production and food distribution costs adjust after the new rates take effect.