The Bangladesh Petroleum Corporation has lowered the prices of jet fuel for both domestic and international flights.
Jet fuel will cost Tk125, down from Tk130, for domestic flights and $0.96, down from $1, for international flights from Friday, the BPC announced on Thursday.
Earlier, Aviation Operators Association of Bangladesh (AOAB) wrote to State Minister for Power, Energy, and Mineral Resources Nasrul Hamid, demanding immediate adjustments to jet fuel prices, as inconsistencies between the two were putting domestic airlines under undue pressure while putting the BPC at risk of significant losses.
On October 26, the BPC increased jet fuel price for domestic airlines by Tk5 to Tk130 per litre. At the same time, the price of jet fuel for international airlines dropped from $1.09 to $1 per litre.
According to AOAB data, the previous rates would have led to the BPC earning Tk2.25 crore per month from the sale of jet fuel to domestic airlines, while losing Tk50.3 crore per month from the sale of jet fuel to international airlines. When the amounts are aggregated, it would have amounted to the corporation losing about Tk600 crore each year.