Fuel prices in Bangladesh

Fuel Prices in Bangladesh: What You Pay at the Pump and Why

As of late June 2026, petrol in Bangladesh costs about $1.178 per liter, which works out to roughly $4.46 per US gallon. In local terms that is around ৳144.9 per liter of octane-grade gasoline. Diesel — the fuel that moves the country's buses, trucks, river ferries and irrigation pumps — sits lower at about $0.934 per liter. Compared with the global average of $1.484 per liter, Bangladesh remains noticeably cheaper than the world norm, ranking 46th out of 170 tracked locations for petrol affordability (counting up from the cheapest).

Why Bangladesh's Pump Prices Sit Where They Do

Bangladesh is a net importer of refined petroleum products. The state-owned Bangladesh Petroleum Corporation (BPC) handles the bulk of imports, refining the small share it can at the Eastern Refinery in Chittagong and buying the rest as finished fuel on the open market. Because the country produces very little of its own crude or refined product, world oil prices and shipping costs feed almost directly into domestic costs.

For years, the government cushioned that exposure with subsidies, holding pump prices artificially flat through BPC. That approach became expensive when global prices spiked, so Bangladesh has moved toward a periodic price-adjustment formula that ties retail rates more closely to international benchmarks. The result is prices that now rise and fall in steps rather than staying frozen for years. Built into the final number are import duties, value-added tax and other levies — fuel taxation is a meaningful revenue source, though Bangladesh keeps its tax burden lighter than most of Europe.

The Currency Factor

The other half of the story is the Bangladeshi taka (BDT). Fuel is imported and paid for in US dollars, so when the taka weakens against the dollar, each liter costs more in local currency even if the global oil price hasn't budged. The taka has lost ground over the past several years, which is a major reason the local price in ৳ has climbed faster than the dollar price suggests. Anyone comparing Bangladesh with peers like Paraguay or Guatemala — other import-dependent economies — sees the same currency-versus-crude tug-of-war play out.

The Long-Term Trend

The historical record makes the direction clear. Between July 2016 and June 2026, petrol in Bangladesh averaged about $0.842 per liter. The cheapest reading on record was $0.724 back on 11 July 2016, and the most expensive was $1.179 on 1 June 2026 — essentially today's level. In other words, the current price is right at the decade high. That trajectory reflects both the gradual rollback of blanket subsidies and the steady depreciation of the taka.

Even so, Bangladeshi drivers pay less than motorists in many import-reliant nations. Heavily taxed or currency-strained markets such as Puerto Rico and resource-rich but logistically challenged ones like the DR Congo show how widely costs can swing. For a full side-by-side, see our roundup of world fuel prices.

FAQ