The Government is not making any profit since the fuel prices fell on international market as we are paying off loans of over Tk 32,000 crore with the money,” State Minister for Power Nasrul Hamid told parliament while making a statement.
State Minister added, the Government had to give huge fuel subsidies when oil prices were high on the world market.
Bangladesh Petroleum Corporation (BPC) had to take loans from the finance ministry for selling fuels at lower prices, Hamid said.
The Government is now repaying the loans. Besides, it is setting up new gas pipelines with the money it gets from fuel sales, mentioned on his speech.
Earlier, the energy ministry sent a detailed report to the Ministry of Finance spelling out the consequences of dwindling oil prices in the international market and fiscal health of state-run BPC.
Sources informed, Government made the analysis meant for readjustment of the fuel prices with its procurement costs by taking its latest payments. But later the government dropped it considering its huge liabilities and other related issues.
Bangladesh is among a very few countries that kept the domestic oil prices higher despite drastic fall in international prices.