How rising fuel prices to increase household costs

An increase in fuel prices inevitably causes household expenses to spike, often quietly but pervasively. The cost of living rises at almost every step: essential commodities become more expensive, and transportation costs climb.

By the end of the month, when balancing household accounts, the depth of this impact becomes evident. The burden falls most heavily on low- and middle-income households, where disposable income shrinks and savings are quickly depleted.

The government has raised fuel prices as follows: diesel 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. These new rates came into effect last Sunday.

Liquefied Petroleum Gas (LPG) prices have also increased. The price per kilogram has risen by Tk 17.62. The widely used 12 kg LPG cylinder now costs Tk 1,940, up from Tk 1,728—an increase of Tk 212. This marks the second price hike within the current month.

Below is a closer look at how rising fuel prices are likely to affect everyday life:

With increases in octane, petrol, and diesel prices, transport expenses are the first to rise. Bus fares, ride-sharing services such as Uber and Pathao, and eventually even rickshaw fares are expected to increase.

For example, if a daily commute previously cost Tk 100, it may now rise to Tk 130–140. Over a month, this translates into an additional Tk 700–800 in expenses.

Higher fuel prices raise transportation costs for goods. Truck fares have already begun to rise, which will inevitably push up prices in local markets. Vegetable prices have already shown an upward trend.

Diesel-powered irrigation will also become more expensive, potentially driving up rice prices. Consumers will thus have to pay more for everyday essentials.

The cost of diesel-based electricity generation will increase, raising overall production costs. To reduce subsidies, the government may increase electricity tariffs. If this happens, monthly electricity bills will rise. For instance, a bill previously amounting to Tk 1,500 could increase to Tk 1,700–1,800.

As the prices of goods and utilities such as electricity, water, and gas rise, landlords often use this as justification to increase rent. A tenant paying Tk 10,000 per month may be asked to pay Tk 11,000 instead, further adding to household expenses.

Dining out with family is also likely to become more expensive. Restaurants typically rely on LPG, and with its price rising, food prices are expected to follow suit.

A meal that previously cost Tk 100 may now cost Tk 120–130. For a family dining out twice a month, this could mean an additional Tk 200–300 in expenses.

Online food and product delivery charges are also expected to rise. Delivery fees may increase by Tk 20–30 per order. For households placing 8–10 orders a month, this could add Tk 200–300 to monthly expenses.

As overall expenses rise, savings are likely to decline. A household that previously saved Tk 5,000 per month may now only manage Tk 2,000–3,000 after covering increased costs.

Ultimately, the cumulative impact of rising fuel prices and related costs places significant pressure on household budgets. Low- and middle-income families may struggle to make ends meet, often resorting to borrowing. Where once Tk 2,000–3,000 might have remained at the end of the month, households may now face zero balance—or even debt.

In sum, fuel price hikes ripple through the economy, affecting nearly every aspect of daily life and tightening financial conditions for ordinary citizens.