Bangladesh’s fuel import bill has surged dramatically in the first nine months of the ongoing fiscal year, driven by soaring global oil prices and rising domestic demand amid expanding economic activity.
Between July and March of FY2025-26, the country spent $6.3 billion importing fuel oil -- a staggering 54.41 per cent increase from the same period a year earlier, according to Bangladesh Bank data.
The jump has sharply increased fuel’s share in the national import basket. Of the country’s total import expenditure of $54.55 billion during the period, 11.55 per cent went towards fuel oil imports, up from 7.79 per cent a year earlier.
The increase was not only in spending. Import volumes also rose significantly.
At the same time, imports of other major goods weakened.
Imports of industrial raw materials, including yarn for the garment sector and other essentials, fell 7.6 per cent, while food imports dropped 13 per cent.
Energy experts and economists said the spike reflected both rising international prices and stronger local demand.
Bangladesh imported nearly $792 million worth of fuel oil in March alone, central bank figures showed.
The latest nine-month expenditure has already exceeded any previous full-year spending on fuel imports. In the entire FY2024-25 fiscal year, Bangladesh spent $5.45 billion on fuel imports.
If imports continue at the current pace, the annual bill is expected to climb even higher over the remaining three months of the fiscal year.
The imported fuel basket includes diesel, crude oil, furnace oil, petrol, octane, jet fuel and base oil.
Global oil prices have also remained volatile.
International markets were closed on Sunday due to the weekly holiday. On Saturday, Brent crude -- one of the global benchmark oils -- stood at $109.30 a barrel, while WTI crude traded at $105.40.
Prices began surging after the United States and Israel attacked Iran on February 28, triggering fears of supply disruptions.
Brent crude briefly climbed to $120 a barrel before falling below $100. It crossed the $100 mark again earlier this month.
A year earlier, at the end of May 2025, Brent crude had been trading near $60 a barrel.
Bangladesh Bank data showed crude petroleum import costs jumped 81.10 per cent year-on-year to $933.7 million during July-March, while spending on petroleum, oil and lubricants (POL) rose 50.20 percent to $5.36 billion.
During the same period of FY2025, Bangladesh spent $515.6 million on crude oil imports and $3.57 billion on POL imports.
Overall imports during the nine months rose 4.2 per cent year-on-year to $54.55 billion from $52.36 billion.
Energy expert M Tamim told bdnews24.com the rise was mainly caused by higher prices and stronger demand.
“Global oil prices are on an upward trend and do not appear likely to fall anytime soon. So expenditure in this sector may increase further in the coming months,” said the former BUET professor.
He advised the government to closely monitor global developments and maintain at least one-and-a-half months of fuel reserves to avoid crises such as long queues at petrol pumps.
Towfiqul Islam Khan, senior research fellow at the Centre for Policy Dialogue (CPD), said oil arriving in March had largely been purchased earlier at lower prices before the war began on February 28.
“From April onward, oil imports had to be bought at much higher prices,” he said.
Warning of further pressure, he said total fuel import expenditure in the current fiscal year could exceed $8.5 billion.
“Compared to last fiscal year, spending may rise by nearly $4 billion,” he added.
Power Minister Iqbal Hassan Mahmood Tuku has also acknowledged the mounting burden.
Speaking at an energy discussion on April 28, he said the global crisis had already added an extra $2 billion to Bangladesh’s fuel import costs, intensifying financial pressure on the power and energy sector.
The government raised domestic fuel prices on Apr 18 to cope with the mounting strain.
Diesel prices were increased from Tk 100 to Tk 115 per litre, kerosene from Tk 112 to Tk 130, octane from Tk 120 to Tk 140, and petrol from Tk 116 to Tk 135.
Fuel import volumes also climbed sharply.
Bangladesh imported 5.74 million tonnes of fuel during July-March, up from 5 million tonnes in the same period of FY25. Total imports for the whole previous fiscal year stood at 6.22 million tonnes.
Bangladesh’s annual fuel demand is estimated at around 7.2 million tonnes.
More than 92 per cent of refined fuel is imported by the Bangladesh Petroleum Corporation, while around 1.5 million tonnes of crude oil are refined domestically at Eastern Refinery Limited.
