Bangladesh’s aviation sector is facing severe pressure after the Bangladesh Energy Regulatory Commission (BERC) raised jet fuel prices twice in March 2026, increasing the domestic rate from 112.41 to 202.29 taka per liter and the international rate from 0.7384 to 1.3216 dollars per liter. The 80 percent rise within just 16 days has forced private airlines to raise fares by up to 1,200 taka on domestic routes and more on international ones. Airlines warn that several routes may be suspended due to declining passenger demand and rising operational costs.

Industry representatives, including the Aviation Operators Association of Bangladesh, have criticized the price hike as unjustified, noting that Bangladesh’s jet fuel prices are now far higher than in neighboring countries. They argue that there is no supply shortage, as 25 oil tankers arrived recently with fuel purchased at previous rates. Experts warn that the sudden increase will strain airline finances, reduce passenger growth, and disrupt operational stability.

The higher fuel costs are also expected to affect cargo transport and overall economic activity, particularly for smaller and newer airlines struggling to manage expenses.