Rising global fuel prices have put additional pressure on Bangladesh’s external trade, pushing the country’s trade deficit to $7.47 billion in the first three months (July-September) of the current fiscal year 2026-27.
Fuel import costs more than doubled during the period, while export earnings grew at a slower pace amid industrial stagnation and energy shortages. As a result, the gap between imports and exports widened, putting further pressure on the country’s balance of payments.
According to Bangladesh Bank data, import expenditure increased by 15.10 per cent during July-September, while export earnings grew by only 7 per cent.
The country spent $19.33 billion on merchandise imports during the first quarter of the fiscal year, while export earnings stood at $8.38 billion.
The sharp rise in import costs was mainly driven by higher expenditure on crude oil, petroleum products and lubricants. Bangladesh spent $4.22 billion on importing these products during the July-September period, compared to $2.05 billion in the same period of the previous fiscal year, marking a 105 per cent year-on-year increase.
Industry insiders said higher fuel import costs were putting pressure on the country’s dollar market and external transactions. At the same time, slower-than-expected growth in major export sectors has prevented export earnings from keeping pace with rising import expenditure.
High international prices of fuel and essential commodities have further complicated the situation, they added.
Despite more than 13 per cent growth in remittance inflows, the country’s current account recorded a deficit of $1.33 billion by the end of September.
The current account had posted a surplus of $590 million during the first two months (July-August) of the fiscal year. However, the situation reversed in September, turning the surplus into a deficit.
Although remittance and export earnings increased, the inflow of foreign currency was insufficient to cover the higher expenditure on imports.
Bangladesh Bank officials said the growing import bill was primarily responsible for the current account deficit, as growth in remittances and export earnings could not match the increase in import payments.
Despite the widening current account deficit, the country’s financial account showed some improvement, returning to a surplus of $320 million by the end of September.
The improvement was mainly supported by a rise in foreign direct investment (FDI), foreign grants and loan inflows.
However, the surplus was significantly lower than the $1.79 billion recorded during the same period of the previous fiscal year.
Foreign loan disbursements also declined. Bangladesh received around $1 billion in foreign loans during the first three months of the previous fiscal year, while inflows during the corresponding period of the current fiscal year were only half that amount.Overall balance of payments deficit widens
The country’s overall balance of payments has also come under increasing pressure since the beginning of the current fiscal year, partly due to a decline in foreign financing.
According to Bangladesh Bank data, the overall balance of payments recorded a deficit of $694 million during the first two months of the fiscal year. By the end of September, the deficit had widened to $1.16 billion.
Despite healthy remittance growth, the additional inflows were not sufficient to offset the overall deficit, creating fresh pressure on the country’s external sector.
Bangladesh Bank Executive Director and spokesperson Arif Hossain Khan said the rising cost of fuel imports was a major reason behind the widening trade deficit.
He said fuel prices in the international market had doubled compared to previous levels, significantly increasing the country’s overall import expenditure.
However, he expressed optimism that the pressure would not persist for long, saying the economy was expected to return to normal after facing the temporary strain.
