Air travel to get costlier as BPC once again hikes jet fuel price
Following a recent hike in bus and launch fares, now air travellers may have to face a similar plight as Bangladesh Petroleum Corporation (BPC) once again increased jet fuel prices.
Jet fuel price increased 11 times since October last year, is expected to give another severe blow to the local airline industry, following the existing economic crunch due to the Covid-19 pandemic.
Insiders in the aviation industry told The Daily Star that due to BPC's decision, local airlines might lose competition in the global market.
Air travel will inevitably get costlier as a consequence and it will be the passengers who would have to face the burden at the end of the day.
In its latest decision, BPC has increased Tk 7 for each litre of jet fuel which was Tk 70 in October, an official of Novoair, said.
In October 2020, jet fuel was Tk 46 per litre, meaning that BPC has increased the price 67 percent over the last 13 months, sources at the aviation industry said.
In December 2020, per litre jet fuel cost was Tk 48, which rose to Tk 53 in January 2021. It was then Tk 55 per litre in February, Tk 60 in March, and Tk 61 in April.
However, in May, the price decreased by one taka per litre.
In June, the price of per litre jet fuel was Tk 63, Tk 66 in July, Tk 67 in August and Tk 70 in October.
Kamrul Islam, general manager (public relations) of US-Bangla Airlines, said airlines around the world are getting support from their governments to remain afloat during the pandemic.
"When we need support from the government on an emergency basis, BPC has been increasing jet fuel prices on a regular basis," he added.
"Under these circumstances, we won't be able to compete with our global competitor," KAmrul said
He said 40 to 46 percent of an airliner's operational cost goes to fuel.
KaziWahidulAlam, an aviation expert said in face of adverse effects due to Covid-19, different countries are making plans for the survival of their airlines' industry.
"But our government has so far done nothing in this regard. Instead, it has increased jet fuel prices without any logical explanations," he said.
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