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Bangladesh Petroleum Corporation (BPC) has incurred Tk20,059.73 crore in losses over the past five months as it imported fuel at higher international prices but sold it domestically at lower rates.
The losses, recorded from March to July, have been driven largely by soaring global oil prices amid the ongoing conflict in the Middle East, according to BPC officials.
The corporation fears losses could rise by another Tk11,000–12,000 crore between August and December, potentially pushing its total losses beyond Tk32,000 crore this year if global prices remain high.
BPC has sought an urgent Tk20,059 crore government subsidy, warning that without additional funds, maintaining regular fuel imports could become difficult. The corporation also faces risks in repaying billions of dollars in loans secured from the International Islamic Trade Finance Corporation (ITFC).
According to BPC data, its losses stood at Tk2,248 crore in March, Tk7,866 crore in April, Tk2,621 crore in May, Tk6,199 crore in June and Tk1,125 crore in July.
The financial strain has intensified as BPC’s reserves have been depleted after years of losses. The corporation previously had Tk35,000–40,000 crore deposited with various banks, but around Tk11,000 crore was withdrawn by the government, while much of the remaining funds were allocated to development projects.
BPC has proposed three possible measures: providing the requested subsidy, restoring the previous rate of duties and taxes, or adjusting domestic fuel prices in line with international market rates.
The corporation has also asked the Energy Division to brief Prime Minister Tarique Rahman on the situation and take urgent measures to ensure uninterrupted fuel imports.