The latest price hike of all four major petroleum products by Tk 20 per litre, meaning each became costlier by between 14-17 percent, presents an opportune moment to review the state of pricing policy in the energy sector, even as it looks to have turned the corner on the supply crisis that visited upon it in late July, and lasted throughout August.

Defending the price increase, an adviser to the prime minister said international oil prices, including high LNG prices, as well as transportation and insurance costs, were putting significant financial pressure on the government. He placed particular importance on easing the annual subsidy burden in the energy sector. Of the Tk 480 billion in subsidies for the gas and electricity sectors in the budget for the current fiscal, half had already been spent within just the first two and a half months, he informed us.

Given the ongoing volatility in West Asia (or the Middle East, if you prefer), a fuel price hike is not difficult to justify for the government. Yet it is bound to feel arbitrary for ordinary citizens who have to bear the burden by making adjustments to their daily spending habits. Bus passengers have already reported higher fares. The diesel increase is particularly significant because diesel is widely used in public transport, agriculture, irrigation and industry.

The increase has drawn criticism from opposition political parties and passenger advocacy groups in the transport sector, with concerns about the additional burden on commuters. While there have been calls for it to be withdrawn, the government has steadfastly defended the adjustment as necessary in light of international market conditions and domestic financial pressures.

It continues the trend started in 2022, with the since deposed Awami League government's defenestration of the Bangladesh Energy Regulatory Commission through an amendment to the law under which it operates. The commission continued to operate, but the amendment gave the executive a direct route to set prices without the usual regulatory hearings and decision-making process. The government justified the change as necessary to respond quickly to volatile international energy markets. Critics argued that it weakened transparency, public participation and independent regulation.

The BNP's manifesto for the February 2026 national election included a commitment concerning the appointment of the BERC chairman and members. This was part of the party's broader commitment to strengthen accountability and establish a more transparent system for appointments to key public institutions. Although the manifesto also touched upon broader energy sector reforms, including reforms to electricity and fuel pricing policies, it was careful to avoid any specific pledge to restore BERC's authority to independently determine fuel prices, or to prevent the government from setting prices outside the commission's process.

Re-instituting the kind of accountability BERC's involvement in the process used to entail, seems to be an inconvenience our governments have decided they would rather do without. Who ends up losing as a result of that, is clear everytime you pull up at the pump.