Dhaka — Bangladesh has raised domestic fuel prices by as much as 17.4%, increasing cost pressures on households and businesses as international oil prices and shipping expenses continue to rise.

The government said the latest adjustment is aimed at reducing losses stemming from higher fuel import costs. The new rates came into effect Monday and mark Bangladesh’s third fuel-price increase since April.

Diesel saw the biggest increase, climbing 17.4% to 135 taka, or $1.11, per litre, from 115 taka.

The price of 95-octane gasoline rose to 165 taka per litre from 145 taka. Petrol increased to 160 taka from 140 taka, while kerosene climbed to 155 taka from 135 taka.

According to the government, international fuel prices have more than doubled since March 2026. Freight expenses have also increased substantially amid regional instability.

The higher fuel prices are expected to raise transportation and production costs throughout Bangladesh’s import-dependent economy, potentially adding to inflationary pressure while industries are already dealing with energy-related difficulties.

The country’s garment-export sector is especially exposed to the increase because fuel and electricity expenses influence both the production and transportation of goods shipped to international markets.

Mohiuddin Rubel, additional managing director of Denim Expert Ltd, a supplier to brands including H&M, said companies need to maintain competitiveness while dealing with rising gas, power and fuel costs.

The latest adjustment follows increases in April and June, when the government also raised fuel prices in response to growing import expenses.

Authorities are balancing the need to absorb higher international costs against the impact of passing those expenses on to domestic consumers and businesses.

For companies, the effect goes beyond fuel directly used by vehicles or machinery. Higher transportation costs can increase the expense of moving raw materials and finished goods, while rising production expenses can put pressure on margins and prices.

The increase also arrives as portions of Bangladesh’s industrial sector are already experiencing an acute energy crunch. Manufacturers therefore face an added challenge in maintaining production while managing expenses.

Bangladesh’s fuel market has become increasingly vulnerable to disruptions in global energy markets because the country depends heavily on imported fuel.

The latest price adjustment consequently reflects both domestic pricing decisions and the wider impact of elevated international energy and freight costs.

For consumers and businesses, the new rates mean global oil-market pressures are being felt more broadly across the domestic economy, affecting transportation, manufacturing and exports.

Original article