The state-run Bangladesh Petroleum Corporation (BPC) has sought an immediate allocation of Tk 17.58 billion as subsidy from the government to keep its fuel import and supply uninterrupted, officials said.
The BPC chairman Thursday sent a letter, seeking the fund from the Ministry of Power, Energy and Mineral Resources.
The corporation's deficit from oil sales stood at over Tk 2.48 in October and Tk 2.56 billion in November last.
Earlier, the BPC had sought Tk 20 billion in two equal instalments to finance its oil imports, sources said.
The organisation, in the latest letter, however, sought a decreased amount in view of the declining trend in prices of petroleum products in the international market.
The BPC said there could be fuel oil crisis in the country, if it did not get the money from the government in time to finance oil import.
"We have requested the government to provide over Tk 17.50 billion on an urgent basis for continuing our oil import," a BPC high official told the FE.
The deficit of the BPC is gradually increasing for not adjusting fuel prices in the country in line with their prices in the international market, he added.
The government for long has been paying a large subsidy every year because of the mismatch between procurement and domestic marketing of fuel oils
The cumulative deficit of the BPC stood at Tk 293.14 billion during the last five fiscal years, from FY 2008-09 to FY 2012-13. The government has paid it financial support worth Tk 285.07 billion through cash and bond against the deficit, leaving a deficit of Tk. 8.06 billion. Another deficit of Tk. 9.51 billion was estimated between July and November of this fiscal.
The BPC is now incurring loss of Tk 7.15 and Tk 7.12 for selling per litre of diesel and kerosene respectively in the domestic market.
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.
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