Jet fuel price goes up yet again; passengers to bear the brunt

Air travelers will have to pay more as Padma Oil Company Limited -- a subsidiary of Bangladesh Petroleum Corporation -- increased jet fuel prices once again. 

This is the seventh time in the last eight months that Padma Oil Company increased jet fuel prices, dealing a severe blow to local airlines following the global Covid-19 pandemic.

Insiders in the aviation industry told The Daily Star that due to the imprudent decision of BPC, the local airline industry might lose its competitiveness in the global market.

Airline officials also claimed air travel will inevitably get costlier as a consequence, and passengers will have to bear the brunt at the end.

In its latest decision, BPC increased Tk 3 for each litre -- with effect from June 8, according to Padma Oil Company.

In October last year, the per litre price of jet fuel was Tk 46. In December, the price per litre was Tk 48, and in January this year, it was Tk 53. In February, the price of per litre jet fuel was Tk 55, Tk 60 in March, and Tk 61 in April.

However, in May, the price was decreased by one taka. 

Talking to The Daily Star, Kamrul Islam, general manager, public relations, US-Bangla Airlines, said BPC has no logical reason behind increasing jet fuel price at this moment.

"Due to the fuel price hike, we will have no alternative but to increase airfare and passengers will have to shoulder the burden at the end of the day," he also said.

He said the country's aviation industry is on the verge of collapse due to the global Covid-19 pandemic, as this is the worst-hit industry.

Kamrul Islam said 40 to 46 percent of an airline company's operation cost is spent on fuel.

"We will be bankrupt and the aviation industry will collapse if we don't adjust air ticket prices following the fuel price hike," he said.