The cash-strapped state-run Bangladesh Petroleum Corporation (BPC) has sought over Tk 14.50 billion again from the government to meet its fuel import bill, officials said.
The state entity is facing acute financial problem mainly because of non-payment of outstanding dues by the state- run Biman, they said.
Sources said the BPC is passing a hard time due to the fund problem. The Biman is not settling its outstanding dues despite repeated reminders. It is just dilly-dallying.
The BPC chairman sent a letter Sunday, seeking the fund from the ministry of power, energy and mineral resources. The letter was then sent to the ministry of finance (MoF).
The BPC has sought over Tk 14.50 billion subsidy from the government to keep its fuel import and supply uninterrupted, according to the letter.
The BPC has sought the subsidy while the Biman Bangladesh Airlines owes over Tk 10.0 billion to the former, according to a high official of the BPC.
The corporation's deficit from oil sales stood at over Tk 2.48 billion in October, Tk 2.56 billion in November, Tk 2.27 billion in December, Tk 2.71 billion in January, Tk 1.96 billion in February and Tk 2.50 billion in March last, data showed.
"We have requested the government to provide over Tk 14 billion for continuing our oil import," a high BPC official told the FE Tuesday.
He said there could be fuel oil shortage in the country if it does not get the money from the government in time to finance oil import.
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 state entity needs to have Tk 20 billion to repay loan instalment of the Islamic Trade Financing Corporation (ITFC) and syndication loan for the current month and June next, the letter mentioned.
The government for long has been paying a large subsidy every year because of the mismatch between procurement and domestic marketing of fuel oils, sources concerned said.
The government has paid it financial support worth over Tk 12.53 billion against the deficit, leaving a deficit of Tk 8.06 billion from fiscal year (FY) 2008-09 to 2012-13. Some Tk 4.46 billion was its deficit for the July-September period of the current FY.
The BPC is now incurring loss of Tk 7.33 and Tk 6.04 for selling per litre diesel and kerosene respectively in the domestic market.
BPC seeks Tk 14.50b subsidy from govt again to meet fuel import bill
Rezaul Karim | Published: May 07, 2014 00:00:00 | Updated: November 30, 2024 06:01:00
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