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Bangladesh’s fuel import spending surged more than 54 per cent in the first nine months of FY26 as rising global oil prices and growing domestic demand sharply increased pressure on the country’s external payments.

According to Bangladesh Bank data, the country spent $6.3 billion on fuel oil imports between July and March of FY26, up from the same period a year earlier.

Fuel imports accounted for 11.55 per cent of Bangladesh’s total import expenditure of $54.55 billion during the period, compared with 7.79 per cent a year ago.

The increase was driven not only by higher prices but also by rising import volumes. Bangladesh imported 5.74 million tonnes of fuel during the nine months, up from 5 million tonnes in the same period of the previous fiscal year.

The latest spending has already exceeded the entire fuel import bill of FY25, when Bangladesh spent $5.45 billion on fuel imports.

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 per cent to $5.36 billion.

At the same time, imports of other major items weakened. Industrial raw material imports, including yarn and other inputs for the garment sector, fell 7.6 per cent, while food imports declined 13 per cent.

Global oil prices have remained volatile following the escalation of tensions in the Middle East after the US and Israel attacked Iran on February 28, triggering fears of supply disruptions.

Brent crude rose to as high as $120 per barrel before easing, but remained above $100 earlier this month. A year earlier, Brent crude had been trading near $60 per barrel.

Bangladesh imported nearly $792 million worth of fuel oil in March alone, according to the central bank.

Energy expert M Tamim said the surge was mainly caused by rising global prices and stronger local 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,” he said.

He also advised the government to maintain at least one-and-a-half months of fuel reserves to avoid supply disruptions.

Towfiqul Islam Khan, senior research fellow at the Centre for Policy Dialogue (CPD), said oil imported from April onward had to be purchased at significantly higher prices after the Middle East conflict intensified.

“Compared to last fiscal year, spending may rise by nearly $4 billion,” he said, warning that total fuel import expenditure could exceed $8.5 billion by the end of FY26.

Power Minister Iqbal Hassan Mahmood Tuku earlier said the global energy crisis had already added nearly $2 billion to Bangladesh’s fuel import costs.

To cope with mounting pressure, the government raised domestic fuel prices on April 18. Diesel prices were increased to Tk 115 per litre from Tk 100, while petrol and octane prices were also revised upward.

Bangladesh’s annual fuel demand is estimated at around 7.2 million tonnes. More than 92 per cent of refined fuel is imported through Bangladesh Petroleum Corporation, while Eastern Refinery Limited refines around 1.5 million tonnes of crude oil domestically.