Following the US-Israel attacks on Iran, fuel oil prices have risen sharply in the international market, accompanied by increased demand. As a result, Bangladesh spent around $10.64 billion on petroleum product imports in the last fiscal year. In the 2024–25 fiscal year, the country had spent less than $5.14 billion on such imports. Thus, fuel oil import costs increased by $5.5 billion, or 107 percent, in just one year.
According to Bangladesh Bank data, Bangladesh’s total import expenditure stood at $75.24 billion in the 2025–26 fiscal year, compared with $68.35 billion in the previous fiscal year. Overall import expenditure increased by $6.89 billion, or 10.07 percent, during the year. Fuel oil played the key role in driving up import costs, with expenditure on petroleum imports alone increasing by $5.5 billion.
During the last fiscal year, Bangladesh spent $9.44 billion on refined petroleum imports, compared with $4.51 billion in the previous fiscal year. This represents an increase of more than 109 percent. Meanwhile, expenditure on crude oil imports rose by 92 percent to $1.2 billion, compared with just $620 million a year earlier.
The fuel oil import expenditure recorded in the last fiscal year was the highest ever. Previously, the highest expenditure in this sector was recorded in FY2021–22, when the COVID-19 pandemic and the Russia-Ukraine war pushed the cost to $7.99 billion. The figure then declined to $5.77 billion in the following fiscal year before rising again to $6.13 billion in FY2023–24.
Industry insiders said that after attacks on Iran began in February, severe instability spread across the Middle East, significantly increasing the cost of fuel oil imports. The cost has continued to rise. In June alone, Bangladesh spent $1.6033 billion on fuel oil imports, compared with an average monthly expenditure of $886.2 million during the 12 months of the last fiscal year.
Despite spending heavily on fuel imports, the government is struggling to meet domestic demand. Higher fuel costs have increased production expenses for many industries and, in some cases, disrupted production. This is also considered one of the contributing factors behind the country’s high inflation.
Import Costs Decline for Some Essential Consumer Goods
Although fuel import expenditure increased sharply, costs declined in several other categories, including essential consumer goods.
Last fiscal year, Bangladesh spent $5.03 billion importing consumer goods such as edible oil, sugar, pulses, spices, milk and cream. The figure was $5.68 billion in the previous fiscal year, meaning expenditure declined by around $350 million, or 11.40 percent.
Meanwhile, rice import expenditure fell by around 22.5 percent to less than $530 million, compared with more than $680 million in the previous fiscal year.
In contrast, wheat import expenditure increased by 26.10 percent to $2.05 billion, compared with $1.62 billion a year earlier.
A Bangladesh Bank official told Samakal that the US dollar exchange rate has remained between Tk 122 and Tk 124 for a long period, and there is currently no significant difficulty in obtaining dollars. This is largely attributed to strong remittance inflows.
The official said that if conditions in the global market had not deteriorated, Bangladesh’s import expenditure might not have increased so significantly. In that case, the country’s foreign exchange reserves could have risen even further.
As of last Monday, Bangladesh’s gross foreign exchange reserves stood at $37.24 billion, while reserves stood at $32.44 billion under the IMF’s BPM6 calculation. During the period when the Awami League government fell, reserves had declined to $20.48 billion. Earlier, in August 2021, reserves had reached a record level of more than $48 billion, before declining due to various factors, including increased capital flight.
Import of Garment-Related Goods Declines
According to the report, imports of garment-related products declined by 4 percent in the last fiscal year to $17.70 billion.
However, imports of other intermediate goods increased by nearly 9 percent to $19.35 billion.
Imports of capital goods rose by more than 7 percent to $10.23 billion, while imports of other products increased by more than 3 percent to $9.71 billion.
Investment Remains Weak
Bankers said investment is currently below expectations due to several factors, including gas and electricity shortages, high interest rates and the law-and-order situation.
As a result, private-sector credit growth has fallen to 4.47 percent, the lowest level ever recorded.
They said the lack of investment demand, along with tighter measures against money laundering and capital flight, has created relative stability in the dollar market.
To maintain this stability, they said Bangladesh needs to focus on increasing remittance and export earnings. In the long term, greater emphasis should also be placed on boosting investment to create employment.
At the same time, strict measures must continue to ensure that capital flight does not return to previous levels.