Jet Fuel Price Hike: Domestic air travellers to pay Tk 1,000-1,050 more on existing fares
Air travelers will have to pay an additional Tk 1,000 to Tk 1,050 on top of existing airfares for flights to domestic destinations.
Officials of US-Bangla Airlines and Novoair told the media that they had no choice but to adjust fuel surcharges and taxes after the Bangladesh Energy Regulatory Commission (BERC) raised jet fuel prices by about 80 percent at the consumer level, citing volatility in the global market linked to the US-Israel war on Iran.
Under the revised structure, the price of jet fuel for domestic flights has been set at Tk 202.29 per litre, up from Tk 112.41. Meanwhile, jet fuel for international flights will cost $1.3216 (Tk 162.21) per litre, up from the current $0.738 (Tk 90.58).
Experts say the move will deal a blow to air travellers and the country’s airline industry.
For domestic flights, air operators will have to pay Tk 1,200 as duties and VAT, up from Tk 150, said Mofizur Rahman, secretary general of Aviation Operators Association of Bangladesh (AOAB).
After adjustment of surcharge and tax, a passenger will have to pay a minimum of Tk 5,849 for one-way travel to Sylhet, which was Tk 4,799 earlier, Mofizur, also managing director of Novoair informed the media.
He further said that of the minimum fare of Tk 5,849, airlines have to pay around Tk 1,754 to the government as tax and vat.
Following the BERC decision, AOAB has raised serious concern yesterday warning that the move could severely disrupt domestic aviation and push airlines into financial distress.
The association further noted that Bangladesh’s jet fuel price hike is significantly higher than in neighboring countries, with India and Nepal keeping prices unchanged while Pakistan and the Maldives raised prices by around 24.5 percent and 18.5 percent respectively.
According to AOAB, the new pricing structure will increase airline operating costs and raise airfares for passengers, while higher taxes on jet fuel could hinder sustainable growth of the aviation industry. The association urged the government to urgently review the decision and set a realistic pricing structure.
