The state-run Bangladesh Petroleum Corporation (BPC) can expect funding from the central bank for financing the import bills but only after servicing its previous debts, sources said.
"The Bangladesh Bank (BB) is expected to continue providing fresh funds to the cash-strapped BPC to help foot its fuel-oil import bills provided the corporation clears its previous dues," an Energy Division official said.
After saying no to the Energy Division's recent appeal for creation of a US$ 1.0-billion revolving fund for the BPC, the central bank has assured the authorities of providing such conditional support, the official said.
In the last fiscal year, the BB provided $ 300-million worth of fund to the BPC through three nationalised commercial banks for footing the corporations fuel import bills.
"A similar volume of fresh fund will be available from the central bank on a regular basis if the BPC makes the repayment of its previous debt, said a senior official.
The official further said the central bank's proposed lending support will ultimately act as a revolving fund.
According to official sources, the BPC will have to depend more on both the government and donors for financing its growing import costs, caused due to soaring prices of petroleum oils in the global market.
Even after the latest price hike of petroleum oils by the government, the BPC's deficit is likely to reach $ 1.5 billion or Tk 100 billion provided the global petroleum prices stay at the present levels, said officials.
On June 30, the government raised the prices of petroleum products by 33.84 per cent to 50 per cent in order to reduce the losses sustained by the BPC on account of selling the items at much lower price than the imported costs.
An abnormal rise in prices of petroleum oils in the global market had necessitated the government to readjust their marketing prices at the domestic level, officials said, adding that the global price of crude petroleum oil has already crossed US$ 147 per barrel compared to around $ 65 just a year back.
According to an official estimate, the latest upward adjustments will help the Corporation raise an additional Tk 70 billion through selling petroleum oils in the local market.
Even after the price enhancements at the domestic level, the BPC is to sell the petroleum oils at a price lower than its imported costs, officials observed.
The Corporation is expected to get around $ 3.0 billion from sales of petroleum oils for the current fiscal while the amount was over $ 2.0 billion in the fiscal year 2007-08, they said.
On the other hand, the BPC's total cost for import of petroleum products is likely to be $ 4.5 billion to $ 5.0 billion this fiscal provided the global prices remains at the present level.
Currently, the BPC requires importing around 3.7 million tonnes of petroleum oils annually, sources mentioned.
Apart from its expected $ 1.0-billion worth of funding support from the Islamic Development Bank (IDB), the BPC has already sought funds to the tune of Tk 100 billion from the finance ministry to cope with fuel-oils import costs for the current fiscal.
