Airlines Oppose Adjustment of Jet Fuel Price Under New BPC Formula

Industry: Aviation, Oil & Petroleum

A new initiative by the Bangladesh Petroleum Corporation (BPC) to adjust jet fuel prices monthly using a new formula won’t benefit airlines, according to industry insiders. The formula includes the Platts Asia Pacific/Arab Gulf (APAG) Marketscan rate for the preceding month along with other expenses like premiums, lighterage, and financing charges. However, for domestic flights, VAT and other duties will also apply. Despite expectations for international market rate adjustments, airlines express concerns over added costs. They’ve advocated for market competition by allowing alternative fuel suppliers. The BPC asserts the new formula was developed through stakeholder consultations to ensure airline benefits.

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