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Jet fuel prices rise by 117pc in a year and a half

Published : Sunday, 17 April, 2022 at 12:00 AM  Count : 631

Aircraft fuel prices have leapt by 117 percent in one and a half years, causing hikes in ticket prices and triggering concerns among the airlines in the country.
The jet fuel prices began climbing in October 2020 when the price was Tk 46 per litre. It has increased by Tk 54 to Tk 100 since then.
According to Bangladesh Petroleum Corporation or BPC, authorities hiked fuel prices 14 times in the period, while diesel and kerosene prices rose only once at the consumer level.
On top of that, fuel prices in the international market rose on the back of the war in Ukraine, the impacts of which are being felt in Bangladesh.
Irked over the periodic price hikes, US-Bangla Airlines spokesman Kamrul Islam said, "I get it that the price rose due to the war, but why has it been rising since the last 18 months. Even when everything was locked down during the pandemic, fuel prices kept climbing."
 "Prices rose by Tk 13 last week, let's leave that. I want to talk about what's
been happening for the last 18 months - a Tk 54 spike! I can't begin to explain how illogical this is. Why price rose in pandemic times?" he kept questioning.
Kamrul added that even when different countries provided subsidies to the aviation sector to recover from the COVID crisis, fuel prices in Bangladesh kept rising.
"The aviation industry can now turn around and make up for the losses suffered during the COVID. We need to stand by this sector now. Otherwise, we will fall far behind the foreign airlines."
"At the end of the day, people will choose foreign airlines [if this goes on]. A large portion of the expenses of flying a jet goes to fuel, so naturally, a rise in fuel prices will cause the cost of tickets to soar. That, in turn, might put people off from travelling on domestic flights, he fears.
"We've to adjust the fares to survive. If [ticket] prices keep going up, it will affect the airlines' earnings. Period," Kamrul said.
According to data from the aviation companies, Dhaka-Jashore or Dhaka-Syedpur flights would cost Tk around 3,000 before the pandemic, but it is now impossible to buy a ticket under Tk 4,000 on these routes.
Novoair has also raised ticket prices - hiking trips from Dhaka to Chattoram, Sylhet, Syedpur and Cox's Bazar by Tk 500 each and to Jashore and Barishal by Tk 300 apiece.
Reflecting on a similar hike in fuel prices back in 2008, an adviser to Bangladesh Aviation Owners Association ATM Nazrul Islam said, "The domestic flight operations are having a difficult time in such situations and with the Eid-ul-Fit on the horizon, they will really struggle."
"To cope with the crisis, the airlines operate more flights than usual in such period, but it is the passengers who ultimately pay."
BPC officials said the price fluctuation depends on the international market as the jet fuel is entirely imported.
Kazi Mohammad Mozammel Haque, BPC director of finance, said they still have to adjust to price rises in the global market. The government offers no subsidies for jet fuel. Yet the prices in Bangladesh are somewhat lower than markets in Kolkata and nearby areas.
According to the International Air Transport Association, jet fuel prices rose 128.5 percent over the past year, and it climbed the least in the Asia and Oceania regions - 95 percent, while North America saw the biggest spike - 157.8 percent.    �bdnew24.com











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