Bangladesh Petroleum Corporation (BPC) is hopeful of making a net profit of nearly Tk 25 billion in the current fiscal year (FY), 2014-15. The state-run organisation is likely to make pre-tax profit of more than Tk 29.50 billion this FY, officials said.
"After paying tax, the corporation expects to make a profit of around Tk 25 billion in this fiscal, if the prices of petroleum products remain unchanged in the international market and the existing selling prices in the domestic market are kept intact," BPC chairman A M Badrudduja told the FE on Wednesday.
First half of the current FY (July-Dec) was not satisfactory for BPC. But it is in a better position in the second half by making profit, he also said.
Earlier, the government used to provide hefty amounts of subsidy in favour of BPC every year to adjust the yawning gap between its fuel procurement cost and domestic selling prices.
The once-cash-starved corporation is now making profit, and providing subsidy, which started 14 years ago, is stopped, he added.
The corporation started incurring loss from FY 1999-2000. But the trend ended in FY 2013-14, when it incurred loss of Tk 29.30 billion, according to BPC data.
"BPC's profit is gradually increasing for not adjusting fuel prices in the country in line with their prices in the international market. So, we will definitely make profit by the end of this FY," another official of BPC told the FE.
Officials further said there is no plan to reduce the existing fuel prices now, as the government has kept Tk 24 billion as petroleum subsidy for the current FY.
Presently, the country's lone oil importer and distributor in public sector is making profit of some Tk 35.49 per litre for octane, Tk 13.77 per litre for kerosene, Tk 14.68 for diesel, Tk 19.57 for furnace oil, and Tk 18.75 for jet fuel by selling the fuel products, according to a BPC source.
The organisation owes about Tk 29.29 billion to three state-owned commercial banks until December 2014, BPC data showed.
BPC has revised upward its petroleum products' import target for this FY to 5.85 million tonnes instead of earlier-projected 5.74 million tonnes. It procured some 5.45 million tonnes of fuel oils in FY 2013-14.
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