News Desk :
The Bangladesh Energy Regulatory Commission on Tuesday reduced the jet fuel Jet A-1 price for domestic and international airlines.
As per the newly adjusted price, from now on, domestic airlines will have to pay Tk93.57, down by 17.43 per litre from Tk111. Fuel price also went down by $0.1434 for international carriers, from $0.7500 to $0.6066.
BERC said the new price will be in effect from 12am tonight.
On the other hand, Bangladesh Petroleum Corporation has readjusted the storage and sale charge to Tk4.04 per litre of fuel.
Padma Oil Company also readjusted the sale charge to Tk0.88 per litre of fuel.
Earlier, on 18th February, BPC submitted a proposal to readjust the jet fuel, and BERC, on 23rd March, arranged the mass hearing on the proposal of BPC’s motion to readjust the jet fuel.
Jet fuel is usually imported by the Bangladesh Petroleum Corporation. Padma Oil Limited supplies it exclusively to airlines. Private company Pertex Petroleum has recently started producing jet fuel as the first Bangladeshi company. The company will produce 2,800 barrels of jet fuel per day.
According to the airlines, the country has a daily demand of nine thousand barrels of jet fuel.
According to aviation operators, around 40pc-50pc of the cost of airlines is related to jet fuel.
“The operational cost would reduce, consequently the operational losses would be lesser too.
But sustainability of the industry would depend on much more than fuel – on reduction of surcharges, ground handling costs, dollar rates, to name a few,” Imran Asif, CEO, Air Astra, told The Business Standard regarding the impact of decreasing fuel price.
