# What happens to different countries when oil  prices rise?

> When oil prices climb, Bangladesh pays more to import fuel, while exporters like Saudi Arabia and Norway earn more. Here’s why the same price shock plays out so differently.

Published: 2026-10-09 · Desk: Editor's Pick · Source: TezzFeed Desk · By: Maliha Rahham

Oil is one of the most important resources in the global economy. Countries use it to run vehicles, transport food, operate industries and produce everyday goods. When oil becomes more expensive, businesses have to spend more on fuel and transportation. These extra costs are often passed on to customers, meaning people end up paying more for things they buy every day.

For Bangladesh, this is a particularly serious issue because the country imports much of its fuel. When international oil prices increase, Bangladesh has to spend more money to purchase the same amount of fuel. The situation becomes even harder when the taka loses value against the US dollar, since oil imports are paid for in dollars.

The effects are already visible in Bangladesh's economy. In September 2026, diesel was selling at Tk 115 per litre petrol at Tk 140 and octane at Tk 145 with prices unchanged from the previous month. However, keeping fuel prices unchanged does not mean the country is completely protected from international price increases.

Diesel is particularly important because it is used by trucks, agricultural machinery and other vehicles. When diesel becomes more expensive, transporting vegetables, rice and fish to markets also costs more. Farmers may have to spend extra on irrigation while businesses face higher production costs and eventually customers may end up paying more for everyday goods.

The situation is also affecting Bangladesh's garment industry. A September 2026 Reuters report found that fuel costs and energy shortages were putting pressure on factories with some manufacturers facing higher production and transportation expenses. This matters because garments account for a large share of Bangladesh's export earnings and provide employment for millions of people.

Saudi Arabia is a major oil exporter which makes its situation very different from Bangladesh's. When international oil prices rise, Saudi Arabia can earn more money from selling its oil abroad. Bangladesh, on the other hand has to spend more money importing it.

In July 2026, Saudi Arabia exported around 4.125 million barrels of crude oil per day according to data reported by Reuters. Higher international prices can therefore increase government and export revenue. However, this does not mean Saudi citizens are completely unaffected because higher oil prices can still increase transportation, shipping and other business costs. The difference is that the country can receive additional revenue from oil exports while Bangladesh faces a larger import bill.

European countries like Norway provide another interesting comparison. Like Saudi Arabia, it earns money from selling petroleum but it has also developed a system for managing that wealth over a long period. Norway transfers government petroleum revenues into its Government Pension Fund Global, a sovereign wealth fund designed to help ensure that oil income benefits future generations. The fund was worth approximately NOK 21,300 billion at the end of 2025.

This means that when oil prices increase, Norway can receive additional revenue that contributes to national savings. Bangladesh does not have the same advantage because it is primarily a fuel importer. Still Norwegian consumers can face higher petrol prices even when their government earns more from oil. Government oil revenue and the price people pay at petrol stations are not automatically the same thing.

Indonesia has taken a different approach by using fuel subsidies to protect consumers. In April 2026, its government announced that subsidised Pertalite petrol and Biosolar diesel prices would remain unchanged until the end of the year, provided oil prices stayed within its stated economic assumptions. This helps families and businesses avoid sudden increases in fuel costs but then again subsidies also cost the government money particularly when international prices rise beyond expectations.

Pakistan offers another comparison because when fuel prices increase sharply, the government has to consider how to support households already struggling with living costs. Measures such as temporary transport assistance can reduce some pressure although they cannot remove the wider effects of expensive fuel on the economy.

These countries show that rising oil prices do not affect everyone equally. Oil exporters such as Saudi Arabia and Norway can earn additional revenue while import dependent countries such as Bangladesh face higher purchasing costs. Indonesia uses subsidies to protect consumers while other countries allow more of the international price changes to reach domestic markets.

For Bangladesh, the challenge is finding a balance between keeping fuel affordable and managing the cost of importing it. Subsidies can provide temporary relief but they can also put pressure on government finances. Investing in renewable energy, improving public transport and reducing dependence on imported fuel could help protect the country from future price shocks. Oil prices may be decided by events happening across the world but their consequences are felt in our homes, markets and daily lives.

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