The businesses from various sectors are facing further losses due to the increase in fuel prices in the country. Increasing fuel prices will increase production and transportation costs. Global buyers will not pay more than the predetermined price. As a result, exporters will have to spend from their pockets to adjust for the additional costs. This will reduce profits. Economists say that the increase in fuel prices will further increase inflation, which will further increase the suffering of the common people. It will also increase the cost of living. To reduce subsidy pressure and align with the international market, the government has increased fuel oil prices, which came into effect from midnight on April 18, 2026. According to the new decision, prices have increased by 15-20 taka per liter, with diesel at 115 taka, octane at 140 taka, petrol at 135 taka, and kerosene at 130 taka. Profits will decrease. "The government has no choice but to increase fuel prices in the wake of rising prices in the global market, especially in the context of the ongoing Iran-Israel war. However, the question is whether the supply of fuel will remain stable and whether consumers and producers will get fuel as per their needs," said Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA).
He said, "If fuel prices increase, production costs will naturally increase. On the other hand, international buyers are not willing to revise the previously fixed price agreements. As a result, exporters will have to face losses by bearing additional costs. Our main demand at the moment is
to ensure uninterrupted oil supply on time even if the price increases." Shovon Islam, Managing Director (MD) of garment exporter Sparrow Group of Industries, told Daily Industry, "Our garment industry is largely fuel-dependent. About 6 to 8 percent of production costs are spent on the fuel sector, which depends on the availability of gas and oil. We were already in a gas crisis, now it has become more acute. Due to gas shortage, in many cases we have to rely on diesel to run boilers and production activities. In addition, due to load shedding, additional costs are being added to electricity generation."
He said, "Overall, the industry is under great pressure. In the meantime, the cost has increased further due to the increase in fuel prices. But we will not be able to charge additional prices from buyers in the international market. As a result, we have to bear the additional costs ourselves."
"In this situation, every factory will face a major setback. As production costs increase, it will become difficult to survive in the competition. Taking orders at a low price will lead to losses in the business, and asking for a higher price will risk losing orders," said the businessman.
If there is a supply shortage, production will also be disrupted. Bangladesh Tanners Association (BTA) Senior Vice Chairman and owner of Salma Tannery Md. Sakhawat Ullah told Daily Industry, 'More than the increase in fuel prices, the biggest problem now is the fuel crisis. We are not getting the necessary fuel. Due to the power shortage, we were supposed to continue production by running generators, but due to the lack of oil, that is not possible. As a result, production in the tannery industry has come down to almost half. Our industry is a completely heavy industry. When a batch is produced, it has to run continuously for 72 hours. If there is a power or fuel shortage in the middle, production is disrupted and the quality of the product is damaged.'
He further said, 'Along with this, transportation costs have also increased. From raw material procurement to chemical import-export, there are additional costs everywhere. In the current situation, it has become extremely difficult to run a business. The biggest concern is the upcoming Eid al-Adha. During this time, uninterrupted power supply for three consecutive months is very important to preserve and process leather. If load shedding and energy crisis continue, people will also lose interest in buying leather, which can cause major losses for the entire sector.'
Inflation will increase again
According to data from the Bangladesh Bureau of Statistics (BBS), the country's overall inflation rate decreased to 8.71 percent in March, from 9.13 percent in February.
The decline was mainly due to the fall in food prices. According to BBS data, food inflation was 9.30 percent in February, which decreased to 8.24 percent in March.
However, the impact of rising fuel prices will be felt through the production process on all types of daily necessities and agricultural products, which could once again create upward pressure on inflation.
Professor Mostafizur Rahman, Honorary Fellow at the Center for Policy Dialogue (CPD), a private research organization, told Daily Industry, "The government has been trying to manage the situation by subsidizing fuel prices for a long time. But considering the current revenue situation and financial capacity, it finally had to decide to adjust prices. As the uncertainty continued, there was no way to avoid this decision."
He said, "The direct impact of the fuel price hike will be on the consumer. It also has a multiplier effect on the economy. Transportation fares, production costs, local industries, import-substituting production and export-oriented sectors - costs will increase everywhere and ultimately the pressure will fall on the consumer."
Mostafizur Rahman further said, 'Inflation in the country is already at a high level and the common people are under pressure. Meanwhile, the increase in fuel prices will create further pressure, especially for low-income people. This could create a more delicate situation.'
However, due to high-priced fuel imports from the international market and revenue constraints, the government had little choice but to take this decision, he said. "This will have a negative impact on production, consumer welfare, inflation, exports and import-substituting industries. The most important thing now is to strengthen market management so that the impact of this price increase does not increase unreasonably. It must be ensured that prices do not increase abnormally, especially in the areas of transportation fares, etc."
