BERC slashes jet fuel prices by BDT 39.57 per liter

Dhaka: The Bangladesh Energy Regulatory Commission (BERC) has significantly reduced jet fuel prices once again in May, continuing a series of price adjustments amid volatility in the global oil market.

In a statement issued on May 23, the regulator announced that aviation fuel prices would be cut by Tk39.57 per liter, effective from midnight.

Following the latest revision, the price of Jet A-1 fuel for domestic airlines has been lowered to BDT 165.88 per liter from the previous BDT 205.45, including duty and VAT.

For international operations by both local and foreign carriers, the price has been reduced from USD 1.3385 per litre to USD 1.0823 per litre, excluding duty and VAT.

The latest move comes just over two weeks after BERC reduced jet fuel prices by BDT 22.35 per liter on May 7. Earlier, the commission increased aviation fuel prices by around BDT 25 per litre on April 7, while a sharp hike of nearly BDT 90 per litre was imposed on March 24.

BERC said the pricing adjustment was made under its market-based fuel pricing framework, which is linked to international benchmark rates.

According to the commission, the revised rates were calculated based on the average Platts price of Jet A-1 fuel between May 5 and May 21, alongside the US dollar exchange rate used for settlement of Bangladesh Petroleum Corporation (BPC) letters of credit and prevailing domestic diesel prices.

The regulator also took into account changes in transportation costs through coastal tankers and pipelines before finalizing the revised fuel prices.

K