The Bangladesh Petroleum Corporation (BPC) is grappling with a dollar crisis and currently has $250 million in dues for imported fuel. The state petroleum company is paying suppliers in installments due to the dollar shortage and has been able to secure acceptance of delayed payments. The Reuters report titled “Bangladesh struggles to pay for fuel imports as dollar crisis worsens” highlighted the BPC’s struggle to pay for imported fuel, with outstanding dues exceeding $300 million.
The country’s dollar reserves have significantly decreased, leading to fuel shortages and power cuts that are adversely affecting the export-oriented garments industry. The BPC has requested permission from the government to settle dues with India in rupees through domestic commercial banks. The company imports 500,000 tonnes of refined oil and 100,000 tonnes of crude oil monthly. Suppliers such as Unipec, Vitol, ENOC, Indian Oil Corp, PetroChina, and Indonesia’s BSP are among the creditors. The BPC has urged nationalized commercial banks to settle dues with Indian companies in rupees to alleviate the dollar shortage. The International Monetary Fund approved loans of $4.7 billion for Bangladesh in January to support its economy.
Source for more details:
