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Dhaka Friday,  Mar 29, 2024

BPC seeks Tk 10b in subsidy for oil import

The Energy Division has sought Tk 10.0 billion as subsidy for import of oil for six months in July- December, 2013, from Finance Ministry.
Bangladesh’s demand for fuel is growing sharply as a shortfall of natural gas has forced it to turn to costly oil-fired power plants to resolve the crippling electricity shortages.
Energy Division officials said, The Bangladesh Petroleum Corporation (BPC) required US$5.0 billion for the fiscal year 2013-14 as fuel cost, of which $1.0 billion would be required for payment as subsidy.
The government has set the amount of Tk 28.75 billion as target for fuel subsidy in the current fiscal year (FY). It has also set 5.3 million litres as target of fuel demand for the current FY.
The Bangladesh Petroleum Corporation (BPC) has incurred a loss to the tune of Tk 9.20 for each litre of diesel, and Tk 10 for each litre of kerosene. BPC has received Tk 27 billion as fuel subsidy in FY 2012-13. The fuel subsidy amounted to Tk 125.50 billion for 2011-12 fiscal year.
The government on January 3, 2013, raised the petroleum prices with effect from January 4, the second time after December 30, 2011, aiming to reduce fuel subsidy.
Currently diesel and kerosene are selling at Tk 68 per litre, while octane and petrol at Tk 99 and Tk 96 per litre respectively. The petroleum prices were last raised in November, 2011.
The government took loan worth $2.6 billion from Islamic Development Bank (IDB) in FY 2011-12. The government has already taken $2.2 billion loan from IDB for fuel import in the current fiscal year.

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