The Aviation Operators Association of Bangladesh (AOAB) has called for a review of the decision to increase the price of jet fuel at an abnormal rate. The organization says the Bangladesh Energy Regulatory Commission (BERC) has put the country’s aviation sector at major risk by raising the price of jet fuel by nearly 80 percent.
In a press release today (March 24), AOAB said, as per BERC’s recent decision, the price of Jet A-1 fuel for domestic flights has been increased from Tk 112 41 paise to Tk 202 29 paise per litre. Similarly, the cost of fuel per liter for international flights increased from $0.7385 to $1.3216.
Secretary General of the organization Mofizur Rahman said that there is no shortage of fuel oil in the country and recently the price of oil in the international market has been declining. As many as 25 oil tankers have arrived in the country in the last few weeks, bought at predetermined prices. In this situation, it is not logical to increase the price of jet fuel on such a large scale based on the fear of future price increase.
He also said that compared to the neighboring countries, the increase in the price of jet fuel in Bangladesh is unusual. While prices remained unchanged in India and Nepal, they were hiked by around 24 per cent in Pakistan and around 18 per cent in the Maldives. But in Bangladesh, the rate is around 80 percent, which will put a lot of pressure on the airlines.
According to AOB, if this price hike is implemented, the country’s airlines will face severe financial crisis and its impact will directly affect the passengers. There may also be risk of flight closures to some destinations along with fare hikes, especially on domestic routes.
In this context, the organization demanded the government to reconsider this decision quickly. According to them, it is important to ensure the stability and sustainable growth of the country’s aviation sector by setting a realistic and acceptable price.
