Staff Reporter :
The rising airfares in the country as a result of soaring jet fuel price will hamper aviation and tourism sectors’ progress, sources said.
Sources said that jet fuel price is increasing due to unstable energy market in international arena.
Price of jet fuel increased by Tk 25 per litre in the last three months, sources said.
Jet fuel price had been hiked by 120 percent in the last 18 months.
As per the market price, jet fuel is now selling at Tk 100 per litre against Tk 46 in October, 2020.
Airfare also has been increased parallel with the hiking trend of the jet fuel during the pandemic.
Airfare increased by about 100pc during the Covid era.
Padma Oil company, the sister concern of Bangladesh Petroleum Corporation increased jet fuel price by Tk 13 recently.
As per the data of the BPC, jet fuel price in international market USD 1.02 per litre.
According to the account, its price is Tk 122 in international market while the government is selling it Tk 100 per litre with subsidies.
Meanwhile, aviation businesses requested the government to reduce jet fuel price by increasing subsidies to save the aviation and the tourism sector.
“The jet fuel price was Tk 46 per litre in October 2020 while it is now selling at Tk 100. About 40 pc of the operational cost of aviation sector is dependent on the fuel. So, the hiking trend of fuel price could directly influence on airfare,” said Md. Kamrul Islam, General Manager of US-Bangla Airlines.
He urged the government to reduce fuel price by giving more subsidies or reducing VAT in domestic routes.
On the other hand, officials of BPC said there is no chance to decrease the jet fuel price if it is not reduced in international market.
There were about 3,19,708 metric tonnes of demand of jet fuel in the country in 2021, all of which was dependent on importing, sources said.
“There are hiking trend of energy price in international market. We are purchasing per litre jet fuel by Tk 121 to Tk 122. So that, there is nothing to do over reducing the price without decreasing it in the world market,”
said Khalid Ahmed, Director of the BPC.
On the other hand, the airfare also has been increased due to hiking trend of the fuels.
About 40 pc of operational cost of a plane is dependent on its costs of fuel.
The cost of energy used to influence the airfare directly, officials said.
There was Tk 2,700 as lowest plane fare on the Dhaka-Jashore and the Dhaka-Syedpur routes before the Covid-19 pandemic which are now hiked by Tk 4,800 in the both routes.
Similarly, it was Tk 3,700 as lowest plane fare on the Dhaka-Cox’s Bazar route before the pandemic which is now stand at Tk 5,800.
The least airfare is now Tk 5000 from Tk 2,700 in Dhaka to Chattogram, Rajshahi and Sylhet routes.
The passengers in airways used to increase during the Eid festivals.
The increased airfare is humiliating to the plane passengers.
