BPC Reports Loss of Nearly Tk 90 Per Liter on Diesel

Md. Rafiqul Islam, Chairman of the Bangladesh Petroleum Corporation (BPC), stated that the corporation is incurring a loss of approximately Tk 90 on every liter of diesel sold due to rising fuel prices and transportation costs in the international market. He remarked that, given the circumstances, there was no alternative but to adjust domestic fuel prices.

The BPC Chairman shared this information with the media on Monday, September 21. This announcement followed the government's decision, made a day earlier, to raise the prices of diesel, kerosene, petrol, and octane by Tk 20 per liter.

The new prices came into effect on Monday. The price of diesel is now Tk 135 per liter; kerosene is selling at Tk 155, petrol at Tk 160, and octane at Tk 165. Previously, the prices were Tk 115 for diesel, Tk 135 for kerosene, Tk 140 for petrol, and Tk 145 for octane per liter.

Why Fuel Prices Were Raised

According to the Energy and Mineral Resources Division, fuel prices and freight charges in the international market have risen significantly since last March due to the ongoing conflict in the Middle East.

The government maintains that although international prices more than doubled, domestic prices were not adjusted at the same rate, out of consideration for the public interest. This has increased the financial burden on BPC.

Government data indicates that at current international market rates, BPC incurs a loss of approximately Tk 89 per liter of diesel. Consequently, the daily loss amounts to roughly Tk 1.09 billion (Tk 109 crore).

Government documents and BPC data reveal that the corporation faced additional expenses or financial losses totaling approximately Tk 228.76 billion (Tk 22,875.66 crore) over the six-month period from March to August. The agency has also informed the government about the recent pressure regarding the financing of fuel imports.

According to the BPC Chairman, failing to align domestic fuel prices with the international market would have further escalated the corporation's financial losses. The new prices were set to help alleviate some of that pressure.