Bangladesh has recorded one of the steepest increases in jet fuel prices globally, raising rates by 79 percent in its latest revision as the ongoing Middle East conflict continues to disrupt energy markets.
The Bangladesh Energy Regulatory Commission (BERC) announced the hike, its second within the month, bringing the total increase in aviation fuel prices to 111 percent since tensions escalated between the United States, Israel, and Iran. The new price has been set at $1.32 per litre, reflecting the sharp rise in global fuel costs.
BERC Chairman Jalal Ahmed stated that the adjustment was unavoidable due to soaring international prices, which have intensified in recent weeks.
The impact of rising jet fuel costs is being felt worldwide. Sri Lanka has also raised its Jet A1 fuel prices by nearly 86 percent, raising concerns within the aviation and tourism sectors. Industry experts warn that such increases are likely to push air ticket prices higher, potentially affecting tourist arrivals.
In the United States, jet fuel prices have more than doubled in a short period. Data from the Argus U.S. Jet Fuel Index shows prices climbing from approximately $2.17 to $4.56 per gallon by March 20, as supply pressures mount amid geopolitical uncertainty.
Airlines are already adjusting operations in response. United Airlines plans to cut around five percent of its scheduled flights, with CEO Scott Kirby warning that continued high fuel prices could significantly increase annual costs. The airline is also scaling back off-peak services and suspending select international routes.
Delta Air Lines has also reported a substantial financial impact, with CEO Ed Bastian stating that the recent spike added nearly $400 million in costs in March alone. Airlines, including American Airlines, are expected to pass these rising costs on to passengers through higher fares.
As fuel prices continue to surge, Bangladesh’s sharp hike highlights the growing strain on the global aviation industry, with ripple effects expected across travel, tourism, and airline operations worldwide.
Will Rising Jet Fuel Prices Undermine Sri Lanka’s Tourism Opportunity?
