Finance adviser AB Mirza Azizul Islam said Saturday there was no alternative to increasing fuel prices as oil soared to an all-time high on the international market.

However, the adviser said any final decision would be taken in consultation with the top brass of the government.

In the next budget, the amount of subsidy on oil for the agriculture sector will be increased, the adviser told reporters at Zia International Airport on his return from abroad.

Azizul attended a meeting of the United Nations Economic and Social Commission for Asia and the Pacific in Bangkok and the Asian Development Bank board meeting in Madrid.

Azizul said: "Fuel prices will surely be increased. We have no alternative to increasing fuel prices as the prices are increasing on the international market."

Oil jumped to a record above $126 a barrel on Friday on the international market, extending gains to more than 11 percent since the start of the month on fuel supply concerns and a rush of speculator buying.

US crude settled up $2.27 at $125.96 a barrel before rising to a record $126.25 in late post-settlement trade. London Brent crude gained $2.56 to settle at $125.40 a barrel, off the earlier high of $125.90.