Local airlines to face hurdles as jet fuel price goes up yet again

Price now Tk 130 per litre
File photo

Local airlines will face a severe blow and lose global competitiveness due to the unprecedented increase in jet fuel prices in the domestic market yet again.

Padma Oil Company Limited, a subsidiary of Bangladesh Petroleum Corporation recently increased the price of jet fuel at Tk 19 per litre which came into effect on July 9.

The price of jet fuel is now Tk 130 per litre.

Stakeholders in the aviation industry slammed the BPC for its irrational decision in increasing fuel prices as they said there is no logic behind BPC's decision as jet fuel price is decreasing in the international market.

This is for the 16th time that Padma Oil increased the price of jet fuel in the last 20 months.

Earlier, BPC used to increase the jet fuel price by Tk 2 to Tk 7. But this time the price was increased at Tk 19 per litre at one go which sources at different airlines termed as unprecedented.

Air travellers will have to pay additional money due to the price hike of jet fuel, sources in the aviation industry told The Daily Star.

In December 2020, the price of jet fuel, which accounts for up to 46 percent of the operational costs of an airline, was Tk 48 a litre.

The price of jet fuel increased 170 percent in the last 20 months, according to sources from different airlines in the country.