Energy Bangla

Bangladesh Petroleum Corporation (BPC) is incurring losses of around Tk 7.8 billion every day. From March to June 11, the total loss of BPC stood at Tk 17,039.56 crore in terms of settling letters of credit (LCs) for imported fuel oil.
Energy and Mineral Resources Minister Iqbal Hasan Mahmud disclosed the information on Monday while responding to a question from Satkhira-2 constituency lawmaker Muhammad Abdul Khaleque during the question-answer session in Parliament. The written responses were placed with Speaker Hafiz Uddin Ahmed in the chair.
The minister said fuel oil prices in the international market started declining slightly from May, but the prices are still higher than the operational costs. As a result, BPC is having to bear losses as fuel is being sold in the domestic market at lower prices.
He said that despite selling fuel at prices lower than international market rates, BPC has continued fuel import operations for three consecutive months using its own funds. If global fuel prices become more stable, the issue of adjusting prices in the domestic market will also be considered.
Relocating BPC Headquarters to Dhaka Could Reduce Irregularities
The Energy Minister informed Parliament that BPC and its subsidiary marketing companies have 1,409 audit objections pending until May, involving a financial amount of Tk 116,233 crore.
He said that although the Energy and Mineral Resources Division and the Audit Directorate are located in Dhaka, the BPC headquarters being situated elsewhere has created complications in exchanging information.
The minister said relocating BPC’s head office to Dhaka would make audit activities more effective and help prevent irregularities.