Bangladesh raises fuel prices second time in six weeks

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DHAKA: Bangladesh increased retail kerosene and petrol prices on Monday, marking its second price hike in roughly six weeks. The government implemented the price revision to ease heavy pressure on state finances, which have been severely strained by ongoing conflict and supply disruptions in the Middle East.

The South Asian nation is highly vulnerable to international market shocks, as it imports approximately 95 percent of its total fuel requirements, the vast majority of which are sourced from the Middle East.

Under the newly adjusted rates, the price of kerosene was raised by 5 taka to 135 taka per litre, while petrol increased to 140 taka per litre. Diesel prices remain unchanged.

This latest increase is expected to compound inflation, which stood at 9.04 percent in April, by driving up transport and food costs. To combat these growing energy security challenges, Dhaka is seeking around $2 billion in loans from multilateral donors and is currently negotiating a new assistance program with the International Monetary Fund.