Domestic jet fuel price climbs for fourth consecutive month, reaches BDT 189.03 per liter

Dhaka: The price of jet fuel for domestic flights has gone up by BDT 6.32 per liter to BDT 189.03, marking the fourth consecutive monthly increase, even as the rate for international flights has been reduced.

The Bangladesh Energy Regulatory Commission (BERC) announced the revised prices in a notice issued on November 5, with the new rates taking effect at midnight.

Under the revised pricing, jet fuel for domestic flights will cost BDT 189.03 per liter, compared with BDT 182.71 previously.

However, the price for international flights has been cut to USD 1.1637 per liter from USD 1.1882.

The latest hike in domestic jet fuel prices comes despite a decline in the international rate, largely due to a change in the calculation of value-added tax (VAT).

According to BERC, VAT is applicable at two stages of domestic jet fuel sales. The tax had previously been calculated at 17%.

The National Board of Revenue (NBR) recently identified the rate as incorrect and advised the authorities to revise the calculation.

Following the recommendation, BERC applied a VAT rate of 22.5%, pushing up the domestic jet fuel price.