The Aviation Operators Association of Bangladesh has expressed dissatisfaction with the role of the Padma Oil Company, a subsidiary of the Bangladesh Petroleum Corporation (BPC), in fixing jet fuel prices.
Describing repeated jet fuel price changes as “jugglery with figures,” the association demanded that the jet fuel prices for international and domestic airlines be set in a rational manner, and also asked for permission for domestic airlines to import and purchase jet fuel through Partex Petroleum.
On November 10, BPC revised and decreased the jet fuel price for domestic airlines by Tk5 per litre. The price was TK130 per litre in late October.
At the same time, the price of jet fuel for international airlines dropped from $1 to $0.96 per litre.
Aviation Operators Association of Bangladesh (AOAB) Secretary General Mofizur Rahman told Dhaka Tribune systematic changes were needed to ensure the survival of domestic airlines and allow them to compete with international airlines.
Nominal changes to the price alone could spell disaster for local airlines, he added, calling for changes to the method used to determine prices.
On November 8, the BPC and local air operators sat down, described the situation under the supervision of the Minister of State for Power, Energy and Mineral Resources, and called for effective action.
Two days later, BPC revised the jet fuel price for both domestic and international flights.
In the wake of the price change, Khaled Ahmed, director of operations and planning at BPC, told this reporter: “We have analyzed the duty, tax, and profit, and decided to decrease the price of the jet fuel price based on regular monitoring.”
He further said any changes directed by the government would be implemented.
Jet fuel prices for domestic airlines are reviewed every month based on the average price for domestic airlines in eight neighbouring countries, while jet fuel prices for international airlines are based on London-based jet fuel price monitor Platts. The prices have not been changed this month, so far.
