Stocks fell sharply today (21 September) as investors reacted to the government's decision to raise domestic fuel prices by Tk20 per litre, fearing higher transportation and production costs would squeeze corporate earnings and fuel inflation.

The sell-off snapped a four-session winning streak on the Dhaka Stock Exchange (DSE), with the benchmark DSEX losing 41 points, or 0.74%, to close at 5,550. The blue-chip DS30 also fell 15 points, or 0.71%, to settle at 2,105.

Market breadth turned decisively negative, with 254 issues declining against 100 advancing and 32 remaining unchanged. Despite the fall in the indices, turnover rose 6% to Tk788 crore as investors actively repositioned their portfolios amid heightened uncertainty.

The government announced the fuel price hike on Sunday night, raising the prices of diesel, kerosene, petrol and octane by Tk20 per litre. The move came as global energy prices have come under renewed pressure amid the ongoing conflict in the Middle East.

Fuel prices hiked by Tk20 per litre
Market insiders said higher fuel prices are likely to raise transportation and production costs across manufacturing sectors, while adding further pressure on consumer inflation. Concerns over their impact on household purchasing power and corporate profitability prompted investors to reduce equity exposure rather than commit fresh funds.

Although some value-seeking investors attempted to accumulate heavily corrected stocks at lower valuations, buying interest was not strong enough to offset broader selling pressure.

EBL Securities said the market recovery faltered after four consecutive sessions of gains as the latest increase in domestic fuel prices, coupled with persistent upward pressure on global fuel prices amid geopolitical tensions, heightened concerns over inflation and its potential impact on corporate earnings.

The brokerage said the session remained volatile, with persistent selling pressure across the trading floor as investors adopted a wait-and-see approach. The resulting lack of conviction kept buying interest subdued and limited the market's ability to sustain its recent recovery.

The post-dividend adjustment of heavyweight Walton Hi-Tech Industries also added to downward pressure on the indices, EBL Securities said. While most stocks underwent corrections amid broad-based caution, insurance and mutual fund stocks remained comparatively resilient as investors sought short-term profit-taking opportunities amid weakened market conviction.

Sheltech Brokerage said the market was primarily shaped by profit-taking activity and cautious sentiment following the fuel price increase. Strong selling pressure in the early session pushed the market lower before bargain hunting emerged.

The DSEX subsequently climbed to an intraday high of 5,599 points. However, the recovery lacked conviction, and renewed selling pressure later dragged the index to an intraday low of 5,550.50 points, where it eventually settled.

Walton, BRAC Bank, Beximco Pharmaceuticals, City Bank and BAT Bangladesh were among the major stocks weighing on the benchmark index.

Textile stocks dominated trading, accounting for 22.6% of total turnover, followed by general insurance at 18.9% and pharmaceuticals at 9.8%. Most sectors ended lower, with textiles falling 2%, paper 1.9% and travel 1.7%. Mutual funds gained 2.5%, while general insurance rose 1.4%.

Eastern Bank led the turnover chart, followed by Sharp Industries, Envoy Textile, IPDC Finance and Orion Infusion.

ICB AMCL 2nd Mutual Fund was the top gainer, rising 10%, followed by Crystal Insurance with a 9.96% gain, First Prime Finance Mutual Fund 9.65%, Orion Infusion 8.73% and Desh General Insurance 8.51%.

Walton became the biggest loser, plunging 11.96%, mainly due to an adjustment following its stock dividend record date. Anlima Yarn fell 6.09%, Peoples Leasing 5.26%, Samata Leather 5.11% and Nahee Aluminum 4.74%.

The bearish session also extended to the Chittagong Stock Exchange, where the CSCX fell 18 points to 9,088 and the CASPI declined 34 points to close at 14,822.

A global diesel shortage fueled by wars in Iran and Ukraine is unlikely to ease ​before next year, according to storage market indicators and industry participants, extending a spike in fuel costs that is weighing on economies worldwide.

The wars have severely ‌disrupted diesel supplies, stranding millions of barrels a day in the Middle East and Russia, draining inventories to historic lows and sending prices to record highs. The shortage has been a drag on economic activity, as diesel fuels agriculture, manufacturing, and heavy transportation.

In the United States, retail diesel prices topped $6 a gallon this month for the first time, squeezing farmers and truckers and stoking worries for President Donald Trump's Republican Party ahead of the November ​midterm elections.

Another sign of persistent tightness is emerging in the storage market. Refiners and traders across North America are declining to renew diesel storage leases because there is little ​fuel available to store, data from storage broker The Tank Tiger showed.

Diesel storage capacity available for leasing in North America and the Caribbean ⁠Islands, a major trading hub, has climbed to a four-year high of 13 million barrels for October, from 11 million barrels in June, The Tank Tiger Chief Operating Officer Steven Barsamian ​told Reuters.

Total US diesel inventories declined to 107.9 million barrels by 11 September, the lowest for this time of year since records began in 1982, according to the US Energy Information Administration.

The ​rapid draw of diesel from US storage indicates how tightly supplied the market has been in recent months, and the rising availability of tanks for lease underscores how long the tightness is expected to persist, Barsamian said.

The combination of falling inventories and rising storage availability suggests market participants expect supplies to remain tight into at least the first quarter of next year, Barsamian said. Storage tanks are typically leased for six months ​to a year.

"More storage is available for lease because no one wants to renew their existing contracts. Why would you pay for a storage tank when there is no diesel to ​store?" Barsamian said.

EcoBox Dumpsters, a US waste management business, is limiting its rising fuel cost by using smaller trucks where possible, grouping deliveries and pickups in the same area, and confirming pickup schedules to avoid ‌unnecessary trips.

"Each ⁠unnecessary truck movement now has a much greater cost," said owner David Garrigus.

A global concern

The EIA also expects inventories to stay depleted.

"We forecast inventories of distillate fuel oil — often sold as diesel — in the United States to fall below 100 million barrels in September and remain below the five-year low through the end of 2026 and most of 2027," the EIA said earlier this month.

European diesel inventories are also low. Stocks in the Amsterdam-Rotterdam-Antwerp storage, refining and trading hub were 16% below the five-year average in July, according to the latest data available from Insights Global. In Singapore, ​total distillate inventory levels averaged about 8.2 ​million barrels over the past few weeks, ⁠similar to pre-Iran war levels, but below the 2025 average of 9.6 million.

"Various Asian emerging markets have been affected quite significantly," said Andrea Pescatori, the International Monetary Fund's Asia-Pacific deputy division chief, at the Asia Pacific Petroleum Conference in Singapore.

Some signs of relief

Industry executives expect global diesel supplies ​to stay tight through winter, particularly if Middle East tensions further disrupt fuel exports and Russia's diesel export ban remains in force through ​October. Moscow will extend diesel ⁠export restrictions until the end of October, Russian business daily Vedomosti reported on Tuesday.

US diesel prices may rise further as US East Coast buyers purchase barrels ahead of the heating season, before peaking, said Alex Hodes, director of energy market strategy at StoneX.

Analysts also expect record diesel refining margins to encourage more production, limiting price increases.

The US diesel crack spread — the premium of ultra-low sulfur diesel futures ⁠over US ​crude oil futures — hit a record $118.62 a barrel on September 14.

Further relief could come from China, which has boosted exports ​steadily in recent months, energy economist Philip Verleger said this month.

Still, any escalation in the Iran or Russia-Ukraine wars, or a major refinery outage, could trigger fresh price spikes.

"Current fundamentals point to higher prices staying here for a while," ​Hodes said.

Commerce Minister Khandakar Abdul Muktadir yesterday said market monitoring would be strengthened to ensure adequate supplies of essential commodities and keep prices stable throughout the year, not just during Ramadan.

He made the remarks at a meeting at his ministry office at the Secretariat to review the supply and prices of essential commodities and the overall market situation.

“No abnormal situation will be allowed to develop in the market. If anyone takes advantage of the current situation to raise commodity prices unreasonably or attempts to make excessive profits, the government will take necessary action,” he said.

Muktadir said coordination among business organisations, importers, producers and government agencies would be strengthened to ensure normal supplies and reasonable prices.

He said gas supply disruptions had affected production in some industries, while transportation of goods had also faced obstacles. Storms and rain had also disrupted markets in several areas.

However, he expected the supply of vegetables to improve as new crops begin arriving with winter approaching.

The minister urged business organisations to monitor markets regularly, saying even price fluctuations of Tk 2 to Tk 4 could undermine public confidence.

“Maintaining public confidence is as important as ensuring market stability,” he said.

Monitoring would be intensified through coordination among the Directorate of National Consumer Rights Protection, the Ministry of Commerce, law enforcement agencies and district administrations, he said.

Regular meetings would also be held with importers to review inventories, imports and supplies.

Highlighting the impact of rising global fuel prices, Muktadir said Bangladesh was also facing the resulting economic pressure.

“If the government bears part of the burden instead of passing the entire cost on to consumers at once, the burden ultimately falls on the national exchequer. Therefore, efficient and economical use of fuel is extremely important,” he said.

The government would consider policy support to keep markets and businesses operating normally, while reviewing aspects of the existing tax structure to keep essential commodity prices affordable, he said.

It would also regularly monitor information on domestically produced goods and products for which letters of credit (LCs) have been opened or which are at the shipment stage.

At the meeting, the Bangladesh Trade and Tariff Commission presented an overview of demand, imports, supplies and prices of essential commodities. It said the import and LC-opening situation was positive compared with the previous year.

According to commission data, annual demand for lentils is around 7 lakh tonnes. From July 1 to September 15 last year, 42,000 tonnes were imported, compared with 1.06 lakh tonnes during the same period this year.

Imports of oilseeds, used as raw materials for edible oil, also rose to 3.86 lakh tonnes from 2.73 lakh tonnes during the same period last year.

Annual sugar demand is around 20 to 21 lakh tonnes, with about 3 lakh tonnes consumed during Ramadan alone. The commission said the overall import and pipeline situation for essential commodities remained positive.

Muktadir said initiatives were also being taken to introduce traceability systems to make supply chains more transparent and accountable.

The system would allow monitoring from production to consumers, with eggs and poultry being considered for priority.

He said the government’s main objectives were to ensure adequate supplies, maintain reasonable prices and strengthen consumer confidence.

“The government and the private sector will have to work together to achieve these goals. Advice from business leaders will play an important role in market management and policymaking,” he said.

At the meeting, business leaders raised issues related to the production, import, transportation, supply and prices of essential commodities and offered suggestions for maintaining market stability.

Md Ataur Rahman Khan, secretary to the commerce ministry; Nasir Uddoula, chairman of the Bangladesh Trade and Tariff Commission; and Md Zahirul Islam, director general of the Directorate of National Consumer Rights Protection, among others, were also present.

The government spent just 1.85% of its Annual Development Programme (ADP) allocation in July-August, the lowest implementation rate recorded to date, as development spending remained sluggish at the start of FY27.

The rate was down from 2.39% in the same period of FY26, according to updated data released by the Implementation Monitoring and Evaluation Division (IMED) today (21 September).

According to IMED data, Tk5,709.70 crore was spent from the ADP allocation in the first two months of the current fiscal year, compared with Tk5,714.83 crore during the same period last fiscal year.

The FY27 ADP has an overall allocation of Tk3,08,924.86 crore, including funds provided by government agencies from their own sources.

Planning Commission and IMED officials said spending is typically low at the start of the fiscal year as ministries and divisions prepare work plans, but is expected to rise gradually as implementation progresses.

Md Sayduzzaman, former chief of the Planning Commission and a public investment management expert, said the change of government had also contributed to the slowdown.

"After a new government comes to power, it naturally takes some time to set its own priorities, reorganise plans and make decisions," he said, adding that ministries also need time to invite tenders, secure approvals and complete other preparations for new projects.

To speed up implementation, Sayduzzaman called for faster decision-making, quicker project approvals and tendering, stronger monitoring and more effective ADP review meetings to resolve implementation problems.

Mustafa K Mujeri, former director general of the Bangladesh Institute of Development Studies (BIDS), said the decline in the implementation rate was certainly a matter of concern, although some slowdown at the beginning of a new government was normal.

Mujeri said the government should prioritise projects and address administrative and institutional bottlenecks to shorten the time between approval and implementation.

He further said the implementation rate could rise in the coming months once the initial obstacles were addressed.

Planning Commission and IMED officials, however, said efforts to improve ADP implementation had been stepped up, with the planning minister, state minister and senior officials meeting ministries and divisions to accelerate projects and ensure quality spending.

They said implementation bottlenecks were also being addressed promptly to prevent delays.

According to IMED data, Tk4,049 crore, or 2.13% of the Tk1,90,000 crore government-funded allocation, was spent in July-August, compared with 1.91% a year earlier.

Spending from foreign loans and grants was Tk1,338 crore, or 1.22% of the Tk1,10,000 crore allocation, sharply below the 2.91% recorded in the same period last year. Agencies spent Tk323 crore, or 3.62%, from their own funds.

Of the 57 ministries and divisions covered by IMED, 17 spent less than 1% of their allocations, while five spent nothing at all.

The Bridges Division and the Ministry of Civil Aviation and Tourism were among those with zero spending despite having relatively large allocations.

Among the ministries and divisions that spent less than 1% were the Ministry of Shipping, Posts and Telecommunications Division, Rural Development and Co-operatives Division, Ministry of Commerce, Ministry of Railways, and Ministry of Environment, Forest and Climate Change.

A free trade agreement between India and New Zealand, signed in April, will come into force on Oct 20, Indian trade Minister Piyush Goyal said on Monday, as New Delhi seeks to boost exports and attract investment amid shifts in global trade.

The deal with New Zealand comes at a time when US President Donald Trump has signed a law that gives him authority to impose up to 100 per cent tariffs on countries such as India for buying Russian oil.

India has accelerated efforts to diversify export markets away from the US, which is its biggest destination so far, through a series of trade agreements with major economies, including Britain and the European Union, reports Reuters.

New Zealand's parliament last week passed legislation to implement the free trade agreement with India, under which tariffs on about 95 per cent of New Zealand's exports to India, including wine, kiwi fruit and apples, would be eliminated or significantly reduced.

The agreement will give all Indian goods duty-free access to New Zealand and ease mobility rules for students and workers. Wellington has also agreed to invest $20 billion in India over the next 15 years.

New Zealand Prime Minister Christopher Luxon and Indian Prime Minister Narendra Modi have committed to doubling bilateral trade by 2030, which stood at about $2.3 billion in the 12 months through June.

"At a time when there is uncertainty around the world in trade, we see tariff rates escalating, we see barriers being put up, India and New Zealand show that we can agree to terms that are beneficial for trade and businesses," New Zealand Trade Minister Todd McClay said via video conference at the event announcing the ratification of the treaty.

India said last week that the new measures to levy tariffs over the purchase of Russian oil could impact bilateral ties with the United States, in a sharp response to the passing of the law.

The government has scrapped the mandatory requirement for export-oriented garment manufacturers to obtain commerce ministry's permission to import yarn and fabric, following an amendment to the Import Policy Order (IPO).

The ministry issued a notification on Sunday (20 September), announcing the amendment – much to the relief of the apparel exporters.

The permission requirement was introduced in the new IPO, which came into effect in August. Businesses had criticised the provision, saying it undermined ease of doing business and increased costs.

Exporters said some consignments of raw materials had already arrived at ports but could not be cleared because importers had not obtained the required ministry permission.

They expect the amendment to speed up customs clearance and prevent such complications.

Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said the IPO had made ministry permission mandatory for importing yarn and fabric for hosiery and knitwear.

"As a result, exporters whose consignments had already arrived at the port were unable to clear them, creating complications," he told The Business Standard.

"We hope the new amendment will resolve this problem," he said.

Local textile mills supply around 80% of the yarn and fabric required by Bangladesh's knitwear manufacturers, although they claim to have the capacity to meet the entire demand.

For woven garments, local textile mills can supply around half of the required fabric.

Exporters, however, sometimes import yarn and fabric to meet buyers' specific requirements or take advantage of price differences.

The latest fuel price hike will add to the cost of doing business and put further pressure on export-oriented industries already struggling with declining competitiveness, according to Shams Mahmud, the president of the Bangladesh-Thai Chamber of Commerce and Industry.

Talking to The Business Standard last night (20 September), he said, "As it is, all forms of business activities, including manufacturing, logistics, agro, service sector, and FMCG [fast-moving consumer goods], are going through stress in these turbulent times.

"International energy markets have recently been affected by the strikes in Saudi Arabia by Houthi rebels. Just today [Sunday], Saudi Arabia said next month's shipment of oil to Europe will be withheld."

"So we can anticipate future price increases. The government has taken the right decision as a policy to create a buffer for any price shock, especially about sourcing and subsidy," he said.

"But unfortunately, this will add a burden to the business ecosystem of Bangladesh, with inflationary pressure on the internal economy reducing disposable income. For export-oriented industries, which are already in a vulnerable state with decreasing competitiveness, it will add to the already increasing cost of doing business," said the businessman.

Also, the International Monetary Fund has been pressuring the government for a reduction of subsidies, and it may also have had an influence on the decision, as both parties will sit in Bangkok next month to work out the next loan from the global lender, he added.

The government last night increased the retail prices of diesel, octane, petrol, and kerosene by Tk20 per litre. The revised rates took effect today (21 September).

With the new price adjustment, this is the second time the BNP government has hiked fuel prices after assuming power in February this year. The last price hike was back in April.

The per-litre prices of diesel, octane, petrol, and kerosene have been raised to Tk135, Tk165, Tk160, and Tk155, respectively.

Experts and policymakers have called for a stronger legal and institutional framework to protect intellectual property (IP) as Bangladesh prepares to navigate the challenges of its graduation from Least Developed Country (LDC) status.

They made the call today (21 September) at a focus group discussion titled Industrial Shift in the Post-LDC Era: Strategies for IPR Issues of Key Industries, jointly organised by the Economic Relations Division (ERD) and the Dhaka Chamber of Commerce and Industry (DCCI).

Participants said the post-graduation environment would create both risks and opportunities for major sectors, including pharmaceuticals, ready-made garments, information technology and agriculture, making stronger intellectual property rights (IPR) protection increasingly important.

ERD Secretary Md Shahriar Kader Siddiky, who attended the event as chief guest, stressed the need to strengthen institutional capacity and statutory frameworks to address emerging IP challenges.

He also called for targeted support for small and medium-sized enterprises (SMEs), which may face greater challenges in navigating the evolving intellectual property regime.

Siddiky said the government already allocates funds for research, but weak coordination limits their effective use.

He said the government is working to address the coordination gaps while also advancing the digitalisation of public services.

DCCI President Taskin Ahmed highlighted procedural delays and policy gaps as major obstacles to effective IP protection.

He proposed modernising IP offices, establishing specialised IP tribunals in Dhaka and Chattogram, and introducing an automated system for trademark registration.

He also called for broader industry-specific awareness programmes so businesses can better understand and protect their intellectual property rights.

The latest fuel price hike will increase industrial and transportation costs, inflation, and put all businesses under further pressure, potentially leading to job losses and reduced operations, according to Anwar-ul Alam Chowdhury Parvez, president of the Bangladesh Chamber of Industries.

Talking to The Business Standard last night (20 September), he said, "The country is experiencing high inflation that is not coming under control. Industries are not getting adequate gas and electricity, resulting in very low private-sector credit growth.

"At such a time, increasing fuel prices by more than 15% without consulting anyone will create additional pressure across all sectors."

The government last night increased the retail prices of diesel, octane, petrol, and kerosene by Tk20 per litre. The revised rates took effect today (21 September).

With the new price adjustment, this is the second time the BNP government has hiked fuel prices after assuming power in February this year. The last price hike was back in April.

The per-litre prices of diesel, octane, petrol, and kerosene have been raised to Tk135, Tk165, Tk160, and Tk155, respectively.

He said the decision will increase industrial production costs, transportation costs, and inflation. "The prices of goods will become uncontrollable. People will lose their jobs, while many businesses will have to scale back their operations.

"Non-performing loans in banks will increase. The government will not be able to create the employment it has been promising," he opined.

He feared that such decisions by the government will erode public confidence in the BNP administration. "Overall, it will create a socioeconomic crisis."

The latest fuel price hike will increase transportation, agriculture, and industrial costs, putting further pressure on inflation and disproportionately affecting poor and lower-middle-income households, according to Dr Fahmida Khatun, distinguished fellow at the Centre for Policy Dialogue (CPD).

"The latest price increase seems to be another adjustment to a continuing external energy-price shock. Nevertheless, increasing all major petroleum prices by the same absolute amount at once is a substantial policy intervention, especially when inflation and household financial pressure are already high," she told The Business Standard last night (20 September) in her immediate reaction.

"The increase will have wide-ranging consequences. Individuals will face higher expenses for transportation. Even households that do not purchase fuel directly will be affected as transportation costs raise the prices of food and other essentials.

"Poor and lower-middle-income families will suffer disproportionately because most of their income is spent on daily necessities," she added.

The government last night increased the retail prices of diesel, octane, petrol, and kerosene by Tk20 per litre. The revised rates took effect today (21 September).

With the new price adjustment, this is the second time the BNP government has hiked fuel prices after assuming power in February this year. The last price hike was back in April.

The per-litre prices of diesel, octane, petrol, and kerosene have been raised to Tk135, Tk165, Tk160, and Tk155, respectively.

Fahmida continued, "Diesel-dependent agriculture will face higher irrigation, mechanisation and transportation costs. This could potentially raise food prices, but reduce farmers' returns."

Around 70% of the country's irrigation pumps are operated using diesel. A research paper published by researchers from Bangladesh Agricultural University (BAU) and the Bangladesh Rice Research Institute (BRRI) found that irrigation is one of the major components of the total input or production costs for Boro rice, accounting for 20-25% of the total expenditure.

Fahmida also said, "Industries will incur higher logistics and generator costs, which will weaken profitability and export competitiveness. Small businesses will be especially vulnerable.

"At the macroeconomic level, the increase may intensify inflation, reduce household consumption and weaken growth."

Since the government had no other option but to increase energy prices, it should monitor how this increased price is imposed on the common people by market players, the economist stressed.

"The government should publish the price calculation transparently, prevent excessive fare increases and market manipulation. The government should also provide targeted support to low-income households, small farmers and public transport users," she added.

Sonali Bank PLC, the country's largest state-owned lender, reported a massive 193% year-on-year surge in consolidated net profit to Tk1,878 crore for the first half of 2026, marking the highest net earnings recorded by any local bank during the six months.

According to the bank's financial statements released recently, consolidated earnings per share (EPS) jumped to Tk41.47 in H1 2026, up significantly from Tk14.14 in the corresponding period last year.

According to bank sources, with this performance, the lender outperformed leading private commercial lenders, including BRAC Bank, which posted a net profit of Tk1,423 crore during the January-June period.

Financial data shows that Sonali Bank's net interest income fell 26% year-on-year to Tk424.88 crore during the first half, primarily impacted by elevated borrowing costs.

However, the state-owned bank offset the interest income decline through robust treasury operations, securing Tk4,824 crore in investment income — a 9% growth compared to the same period of 2025.

Despite strong treasury performance, rising administrative expenses dragged the bank's operating profit — consolidated profit before tax and provision — down by 6% to Tk3,546 crore.

The triple-digit jump in final net profit was largely enabled by a steep reduction in provision requirements against non-performing loans.

During the first half, Sonali Bank set aside Tk1,113 crore in provisions, which was 59% lower than the provision maintained in the same period last year.

During H1 2026, its total classified loans stood at 18.27% of its total disbursement, which was 15.78% at the end of 2025, according to Bangladesh Bank data.

At the end of June 2026, Sonali Bank's consolidated net asset value (NAV) per share stood at Tk332.03.

Iran’s economy contracted by more than 10 percent during the Middle East war, which began with US-Israeli attacks in late February.

The country’s gross domestic product (GDP) shrank by 10.1 percent year-on-year from late March to late June, a period known in Iran as the first quarter of the Persian calendar, according to the Statistical Center of Iran on Sunday.

Iran has been at war with the United States since late February, when US-Israeli strikes killed the Islamic republic’s supreme leader and senior military officials at the start of a vast offensive.

The strikes sparked Tehran’s retaliation in blocking the Strait of Hormuz -- causing global oil prices to surge -- as the conflict spread in the Middle East.

Aside from this, Iran’s economy has long struggled with hyperinflation and devaluation of its currency, caused in large part by economic sanctions.

Bangladesh Bank has allowed Offshore Banking Units (OBUs) to buy and sell foreign currencies directly and conduct cross-currency swap transactions, giving them greater flexibility to raise cheaper foreign-currency funds and manage exchange-rate risks.

The move is expected to help OBUs optimise their funding costs and offer financing at more competitive rates, particularly for permissible trade and business activities.

In a circular issued today (21 September), the central bank said the new arrangement aims to facilitate legitimate customer transactions, improve foreign currency liquidity management, and strengthen the asset-liability management practices of OBUs.

Under the new rules, OBUs can carry out outright foreign currency purchase and sale transactions, as well as cross-currency swaps, with their respective Domestic Banking Units, other authorised dealers, other OBUs, and other legitimate counterparties.

BB said the facility will allow OBUs to access suitable foreign currency funding sources, optimise their funding structures, and manage currency exposures more efficiently.

However, such transactions must be directly linked to permissible customer transactions, funding requirements, settlement obligations, foreign currency liquidity management, asset-liability management, or foreign exchange risk management, the circular said.

The central bank has also advised OBUs to adopt prudent foreign currency funding strategies, including tapping lower-cost currency funding opportunities where feasible, and to use appropriate foreign exchange transactions or cross-currency swaps to hedge or manage related currency risks.

The decision brings OBU operations closer to internationally accepted treasury practices, giving offshore banking units greater flexibility in managing foreign currency liquidity and funding costs. It could also help lower the cost of financing for eligible trade-related activities by allowing OBUs to source foreign currency more efficiently.

The government has formed five specialised working groups to implement the National Logistics Policy 2025 and strengthen Bangladesh’s capacity for domestic and international trade.

The working groups are focused on logistics digitalisation, investment, skills development, multimodal logistics infrastructure and trade facilitation, according to notifications issued by the Prime Minister's Office by the end of last week.

The panels have been formed in line with the decisions of the National Logistics Development and Coordination Committee (NLDCC).

The interim government framed National Logistics Policy 2025, aiming to position Bangladesh as a leading regional trade and logistics hub by 2050, by annulling the previous one formulated in April 2024 by the ousted Awami League-led government.

Of the groups, the trade facilitation working group will be headed by the commerce secretary.

It is mandated to formulate time-bound action plans to reduce time, operational costs and procedures in import-export, customs clearance, cargo release, and port and border management under the policy.

The group will also review progress under the World Trade Organization Trade Facilitation Agreement (WTO-TFA) and propose frameworks for pre-arrival processing, electronic declarations, automated clearance, risk management, green channels, Authorised Economic Operators and post-clearance audits, according to the notification.

Headed by the secretary of the Information and Communication Technology (ICT) Division, the logistics digitalisation working group will prepare a roadmap for real-time tracking and tracing of goods, containers and vehicles from source to destination, integrating digital systems across customs, ports, transport, warehousing, tax and banking, and defining verification metrics for a National Logistics Dashboard.

The investment working group, led by an executive member of Invest Bangladesh, will identify foreign and local investment potential in the sector and identify impediments.

The logistics infrastructure working group will formulate short-, medium- and long-term action plans for physical infrastructure development.

The panel, led by the member for physical infrastructure at the Planning Commission, will also identify bottlenecks across transport modes, ports, inland container depots, container freight stations and logistics hubs.

It will also evaluate and prioritise Public-Private Partnership projects in the logistics sector.

The skills development working group has been tasked with identifying skill gaps and assessing human resource requirements across the logistics sector.

Private inland container depots (ICDs) in Chattogram have raised several container handling and transportation charges by 9.85% following the government's latest increase in diesel prices.

The Bangladesh Inland Container Depots Association (BICDA) announced the revised rates in a circular issued today (21 September), with the new charges taking effect from today. The circular was signed by BICDA Secretary General Ruhul Amin Sikder.

The government raised the price of diesel by 17.4%, from Tk115 to Tk135 per litre, effective the same day.

BICDA said the surcharge was introduced to account for higher operating costs for fuel-dependent activities at private ICDs.

The 9.85% surcharge will be added to the previously reviewed rates for several services, including transporting empty containers between Chattogram Port and private ICDs, and between Patenga Container Terminal (PCT) and ICDs.

It will also apply to empty container lift-on and lift-off charges.

The surcharge will apply to the export goods stuffing and handling package.

The package covers lifting empty containers at the empty yard, transporting them to the container freight station shed, stuffing export goods, transporting loaded containers to the load yard and subsequently moving them to Chattogram Port or PCT.

Charges for weighing export-loaded containers, known as Verified Gross Mass (VGM), will also increase by 9.85%.

The VGM package includes lifting a loaded container at the load yard, transporting it to the weighing scale, weighing it, returning it to the load yard and lifting it off there.

The increase will also apply to import goods delivery package charges.

The package includes transporting import-loaded containers from Chattogram Port or PCT to private ICDs, lifting them off, placing them at import delivery yards and unloading goods from the containers onto trucks using labourers.

BICDA instructed individual ICDs to notify their clients about the 9.85% increase in the previously reviewed rates.

Private ICDs handle export and import cargo linked to Chattogram Port and play a key role in the country's trade and logistics chain.

The oil shock caused by the Iran war is re-charging the electric vehicle (EV) market as high gasoline and diesel prices stimulate consumer demand for alternatives.

Economics is becoming as powerful a driver of EV sales as government subsidies and green ideology, particularly in countries most exposed to the loss of oil and gas supply from the Gulf.

This has huge implications for both the oil and metal markets, particularly for critical EV inputs such as lithium, nickel and copper.

Metal bulls lost interest in the EV story a couple of years ago after reality failed to live up to the early hype.

Grid storage and data centers are now the hot talking-points for lithium and copper markets respectively.

But wars in both the Middle East and Ukraine are acting as powerful accelerators of the green transport revolution.

At a headline level, nothing very much appears to be happening in the EV sector.

Global sales of new energy vehicles grew by just 4 percent year-on-year from January to August, according to consultancy Benchmark Mineral Intelligence (BMI).

That pedestrian growth rate, however, masks wildly differing regional markets.

US President Donald Trump’s elimination of his predecessor’s subsidy scheme has sent the country’s EV sector into steep decline.

Sales in August were down 33 percent year-on-year, bringing the year-to-date contraction to 21 percent.

US auto manufacturers have pivoted back to conventional engines, cancelling planned investment in new electric models and battery supply chains.

China is another weak spot.

The world’s largest EV market saw sales shrink by 12 percent year-on-year in the January-August period.

But this should be seen in the context of a broader downturn in the domestic vehicle market, which registered a 24 percent year-on-year drop in total passenger vehicle sales in August.

The EV segment of the market has fared relatively well, and the new energy vehicle penetration rate hit a new high of 65 percent last month. Not that China’s auto companies are too concerned anyway.

They are exporting record amounts of EVs to the rest of the world.

European sales jumped by 36 percent year-on-year in August, with year-to-date growth running at 29 percent as high pump prices combine with government subsidy schemes. But the most spectacular growth is outside the big three markets.

EV sales in the rest of the world have doubled so far this year, according to BMI.

On a total cost-of-ownership basis, battery EVs have already reached price parity with traditional internal combustion engine vehicles in China, according to analysts at consultancy Wood Mackenzie.

The flood of low-priced Chinese exports at a time of high gasoline prices is rapidly closing the gap in other Asian markets.

But, equally critically, consumer perceptions are changing.

For many, buying an EV is no longer a commitment to the green cause but rather an economic choice.

Wood Mackenzie has modeled what it calls an “electric shock” scenario, in which high oil prices both accelerate consumer adoption of battery-powered vehicles and stimulate governments to prioritise reducing fossil-fuel reliance.

With battery performance continuously improving and EV costs falling, a structural shift in the passenger vehicle market could arrive much faster than expected.

The longer the Iran war grinds on and the longer Ukraine targets Russian oil refineries, the more likely that scenario becomes.

If the EV sector is shifting out of the slow lane, it will mean more pressure on already stressed metal supply chains.

Wood Mackenzie assesses that there will be enough metal to meet even accelerated EV demand but — and it’s a big “but” — only if investment in new production capacity is scaled up at the same rate.

Under the company’s shock scenario, copper demand would only grow by an incremental 2 percent relative to a base-case scenario that assumes global EV sales keep growing at a modest 4 percent annual pace.

But that means additional new mine capacity would have to rise from the long-term average of 850,000 metric tons per year to 960,000 tons between 2025 and 2040.

Lithium demand would grow by an extra 14 percent with availability complicated by China’s dominant control of the global supply chain.

Over the last decade, EV metal markets have struggled to match supply with demand, generating a sequence of price booms and busts.

It’s quite possible they’re going to get wrong-footed again as EV sales accelerate just about everywhere outside the US.

The irony is that while the Trump administration has stalled the US transition to vehicle electrification, it has inadvertently persuaded much of the rest of the world that it is time to go green.

The Bangladesh Fertilizer Association (BFA) has demanded that the sales commission per sack of fertiliser be doubled from Tk 100 to Tk 200 and that the recruitment of new fertiliser dealers be put on hold.

Md Mosharraf Hossain, chairman of the association, made the demands at a press conference held at its office in Dhaka yesterday.

He said dealers have been pressing for a higher commission for 18 years without result. Over that period, fuel prices, transport costs and the prices of essentials have risen repeatedly, sharply increasing dealers’ operating costs.

In 2008, the combined transport cost and sales commission was Tk 100 per sack. After transport and other expenses, dealers were left with a net commission of roughly Tk 25 to Tk 30 per sack.

Under the same arrangement now, Mosharraf claimed, dealers lose around Tk 50 to Tk 55 on every sack.

He acknowledged that the government has raised the commission by Tk 50 per sack, but noted that the increase will not take effect until July 1, 2027.

Even then, it would only bring dealers to a “no profit, no loss” position.

To ensure their survival, he said, the commission must be raised by a further Tk 100 to Tk 200 per sack.

Mosharraf warned that without an increase, dealers may gradually lose interest in the trade, which could disrupt the supply of fertiliser to farmers.

He urged the government to give long-established dealers a chance to stay in business.

The association also objected to the Integrated Policy on Fertiliser Dealer Appointment and Distribution-2026, alleging that several of its provisions are inconsistent, unconstitutional and self-contradictory. It filed a writ petition on the issue on September 2.

According to the BFA, the High Court has since issued a 60-day rule for the issues to be settled legally. The association alleged, however, that district fertiliser and seed monitoring committees are still appointing new dealers in various districts despite the court’s rule.

The BFA added that the agriculture ministry has yet to take any initiative to discuss the disputed provisions with it.

Mosharraf cautioned that the authorities concerned would be held responsible for any untoward incident arising from the situation.

For millions of Bangladeshis already struggling with high cost of living, a Tk20-a-litre increase in fuel prices means another blow to household budgets.

The impact is being felt far beyond filling stations, triggering higher bus fares for commuters, larger fuel bills for motorcyclists, rising irrigation costs for farmers, and heavier logistics bills for factories already struggling with acute energy shortages.

The adjustment marks the second fuel price hike since the BNP-led administration took office eight months ago. It comes at a precarious time: national inflation remains well above 8%, while wage growth has lagged behind living costs for more than four years.

The fallout was immediate.

Public transport operators across Dhaka adjusted fares upwards on several key routes, intercity bus operators raised ticket prices, and freight transporters announced impending rate increases.

For professional ride-sharing motorcyclists, the increase presents a difficult dilemma: absorb the added operating expense and take a direct pay cut, or pass it on to passengers and risk losing trade.

Fuel price hike to intensify inflation, squeeze households: Fahmida Khatun
"The earnings from riding throughout the day barely cover food and clothing for my five-member family. Now that fuel prices have increased, I don't know how I will manage my household," said Jasim Uddin, a ride-sharing motorcycle driver in Chattogram.

For those like him, there is little room to absorb another rise in operating costs.

Al Amin, who drives for Pathao in Dhaka, said his daily fuel bill would rise by Tk100-150, adding Tk3,000-4,000 to his monthly fuel expenses.

The problem extends beyond professional drivers.

The burden also extends to daily commuters who rely on two-wheelers for work, school runs, and errands.

"I need my bike every day to take my children to and from school and for necessary tasks. The way fuel prices are increasing, it will put a lot of pressure on my monthly budget," said motorcycle user Jahangir Alam.

A cost that travels through the economy

Fahmida Khatun, distinguished fellow at the Centre for Policy Dialogue (CPD), said the impact would cascade across households, agriculture, industry, and transport.

"Individuals face higher direct travel expenses, but even households that do not purchase fuel directly will be affected as logistics costs push up the price of food and basic necessities," she said, noting that low- and middle-income families would suffer disproportionately.

That transmission mechanism is already visible. In Dhaka, commuters reported Tk5 to Tk10 fare increases on various local routes. Fares for Laguna human-hauliers running from Chittagong Road to Jatrabari rose from Tk20 to Tk25, while long-distance bus fares from Sayedabad to southern districts jumped by up to Tk50. Some Chattogram-bound services increased fares by Tk100.

Freight networks are feeling similar pressure. A truck operator in Rajshahi noted that hauling produce from Bogura to Chattogram would now cost an additional Tk3,000 to Tk4,000 per trip, an added expense that will inevitably reach retail vegetable markets.

"The additional fare will certainly be passed on by businesses to vegetable prices. As a result, consumers will have to pay more," said truck driver Mohammad Shamim Hossain.

At Benapole, the nation's largest land port, truck freight rates to Dhaka surged from Tk22,000-Tk23,000 to as much as Tk30,000. Cargo runs to Chattogram rose to between Tk35,000 and Tk40,000 per shipment.

Businesses fear those additional costs will eventually reach consumers.

Fears of rising essential costs

While retail prices for basic groceries, poultry, and fresh produce remained broadly stable on Sunday, shopkeepers warn that higher transport costs will feed into shelf prices as new wholesale stock arrives.

Miraj Ahmed, a grocery shopkeeper at New Market, said prices had not changed yet due to the fuel price hike.

"Prices of our products have not changed so far because of the fuel price increase. However, if the cost of transporting goods rises, prices of some products may go up in the coming days," he said.

With key staples like chillies, eggplant, broiler chicken, and fish already trading at elevated levels, consumers fear further freight-driven price increases will make daily nutrition increasingly unaffordable.

Hafiz Uddin, a private-sector employee shopping at Hatirpool, said consumers were now waiting to see whether the fuel price hike would affect the markets. "If transportation costs increase, vegetable prices will certainly go up," he said.

Farmers face higher costs

Agriculture is another major pressure point because diesel remains central to irrigation and mechanisation.

Around 70% of the country's irrigation pumps run on diesel. A study by researchers from Bangladesh Agricultural University and the Bangladesh Rice Research Institute found that irrigation accounts for around 20-25% of total production costs for Boro rice.

That means the fuel increase comes directly at farmers' production costs.

Fuel price hike to push up transport and production costs, worsen inflationary pressure: Selim Raihan
"Diesel-dependent agriculture will face higher irrigation, mechanisation and transportation costs. This could potentially raise food prices, but reduce farmers' returns," Fahmida Khatun said.

For farmers already facing weak prices for some crops, the prospect is particularly worrying.

A farmer in Naogaon, Ahsan Habib, said mechanised irrigation had become essential for cultivation, while fuel prices continued to rise.

He said rice prices had fallen and there were few buyers for potatoes, leaving farmers squeezed between rising production costs and weak selling prices.

The dilemma is straightforward: farmers cannot easily pass all their higher costs on to buyers, particularly when market prices are weak. Their margins can therefore shrink even as consumers eventually face higher food prices through transportation and other costs.

Businesses squeezed from both sides

For manufacturers, exporters and small businesses, the fuel increase adds another layer of costs at a time when many are already struggling with expensive inputs, inadequate gas and electricity supplies and weak demand.

Mosharraf Hossain, Managing Director of Mosharraf Group, which has spinning and dyeing mills, told TBS, "Due to the latest increase in fuel prices, additional expenses will rise by nearly Tk40 lakh per month."

Currently, on average, his spinning mill requires over Tk60 lakh worth of diesel per month due to the gas crisis. And dyeing requires Tk75 lakh to Tk80 lakh. Because of the recent price hike, his monthly diesel expenses will increase by about Tk30 lakh.

Mosharraf said expenses had already risen due to using diesel amid the gas shortage. This new increase will further escalate costs, which will overall raise production expenses. "However, we cannot pass this extra cost on to buyers because demand is not increasing," he said.

He added that while gas pressure has slightly increased compared to before, it is still not sufficient to run the factories at full capacity. "Against my requirement of 15 PSI, we are currently receiving only 2.5 PSI. As a result, I am forced to use diesel," he said.

Fuel prices hiked by Tk20 per litre
Anwar-ul Alam Chowdhury Parvez, president of the Bangladesh Chamber of Industries, said businesses were already operating under severe pressure.

"At such a time, increasing fuel prices by more than 15% without consulting anyone will create additional pressure across all sectors," he said.

He warned that higher fuel prices would increase production and transportation costs and could force some businesses to scale back operations.

Shams Mahmud, managing director of Shasha Denims, said manufacturing, logistics, agriculture, services and fast-moving consumer goods were already under stress.

For export-oriented businesses, he said, the increase would add to the cost of doing business at a time when competitiveness was already under pressure.

The effect can be particularly sharp for businesses that depend on generators or climate-controlled facilities.

At Benapole, frozen shrimp exporter Shyamol Das said higher fuel and transport costs would increase the expense of maintaining cold-chain facilities and moving goods to Chattogram.

"For export-oriented industries, which are already in a vulnerable state with decreasing competitiveness, it will add to the already increasing cost of doing business," Mahmud said.

Dr Fahmida of CPD also believes Bangladesh's export competitiveness may erode because of the latest fuel price hike.

Was there any way out?

Fahmida noted that while the government has limited alternatives to raising prices due to its severely constrained fiscal space, it could still consider two key options: temporarily reducing high import taxes on fuel oils and managing demand more efficiently.

She explained that although high taxes on petroleum products generate crucial government revenue, temporarily lowering them could have cushioned the impact of the recent price hike and eased economic pressure on transport, agriculture, and essential goods.

"Of course, lower taxes would reduce revenue and require alternative financing. The government should therefore publish the Bangladesh Petroleum Corporation's (BPC) import costs, operating expenses, tax payments, and losses," she said.

"When global oil prices surge unexpectedly, taxes could be adjusted temporarily and reviewed once conditions stabilise – balancing consumer relief with fiscal requirements in a measured manner."

She also urged the government to curb fuel pilferage and prioritise distribution to sector-critical needs.

Apparel exporters will now be able to import specialised fabrics and materials used to produce niche products such as seamless sportswear, underwear and functional garments more easily, as the government has relaxed several provisions of the country’s import policy.

The commerce ministry amended the Import Policy Order 2026-2029 through a notification issued on Sunday, with the changes taking immediate effect.

Under the amended provisions, specialised fabrics and materials required for producing certain types of garments can be imported on the recommendation of either the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) or the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA).

The move is expected to ease sourcing of inputs for manufacturers producing specialised apparel, which often require fabrics and materials that are not commonly used in mainstream garment production.

The latest amendment also removes some procedural requirements that had created additional complications for exporters, according to Mohammad Hatem, president of BKMEA.

Speaking to The Daily Star, Hatem said the changes were largely aimed at correcting inconsistencies and unnecessary restrictions in the Import Policy Order 2026-2029.

One of the major changes concerns the import of fabrics and yarn.

Under the previous provision, importers in certain cases were required to obtain approval from the Ministry of Commerce to import knit fabrics and yarn.

“That requirement did not make much sense when imports were already being made under the utilisation declaration (UD) system and within the framework of the import policy,” Hatem said.

He said the requirement could have forced businesses to approach the ministry for approval for individual letters of credit, adding another layer of paperwork to the import process.

The amended policy has removed the requirement, he said.

The government has also scrapped a provision concerning the import of spare parts for industrial machinery.

Previously, the value of spare parts that could be imported was capped at 2 percent of the value of machinery in the first year and 5 percent in subsequent years.

Hatem said the amendment also addressed several other inconsistencies, including contradictory and unclear wording in the previous policy.

“These corrections will make import procedures easier for businesses and reduce disruptions caused by inconsistencies in the policy,” he said.

The notification, however, does not provide any specific duty concession or quantitative limit for the import of the specialised fabrics and materials. Rather, it sets out the conditions under which such inputs can be imported.

Bangladesh Bank has allowed offshore banking units of commercial banks to buy and sell foreign currency and conduct cross-currency swaps, widening their access to dollars for domestic banking operations.

The central bank announced the move in a notification on Monday, saying the new facility was intended to make foreign-currency fund management “more efficient and cost-effective”.

“Offshore banking units have been allowed to directly buy and sell foreign currency and conduct cross-currency swap transactions,” the circular said.

Bangladesh Bank expects the decision to increase access to foreign-currency financing for trade and business at more competitive costs.

The facility has also been introduced to bring the country’s offshore banking operations more closely in line with internationally recognised treasury practices.

Under the new arrangement, offshore banking units will be able to buy and sell foreign currencies and enter into cross-currency swaps with their own banks’ domestic banking operations and with other authorised dealers.

The central bank believes this will enable offshore units to mobilise more foreign currency than before to meet domestic demand. Greater investment opportunities are also expected to make the units more active.

A senior official of the relevant department at Bangladesh Bank told bdnews24.com that offshore banking units would now be able to supply dollars to the domestic banking system whenever needed.

“This creates scope for banks to access more dollars, which should increase the supply of foreign currency across the banking sector,” added the official, who declined to be named.

“As dollar availability increases, competition among banks to sell dollars should also rise. That, in turn, could allow businesses to obtain dollars at a lower cost.”