Bangladesh Petroleum Corporation (BPC) is at risk of international oil suppliers canceling diesel shipments due to delayed payments and outstanding bills. BPC officials have stated that suppliers have already threatened to cancel shipments for these reasons. While the country currently has a 30-day diesel reserve, resolving payment-related issues and settling arrears promptly will prevent future shipment disruptions.
BPC owes over $350 million to oil suppliers, leading many companies to withhold oil despite its arrival at Chattogram Port. The corporation faces additional financial penalties of $32,000 per day due to oil redemption delays. The government secured a $2.3 billion loan from the Islamic Trade and Finance Corporation (ITFC) to address the US dollar shortage for fuel imports, but it is mainly allocated for crude oil rather than refined oil or diesel. The scarcity of dollars in the energy sector poses a significant crisis impacting letter of credit (LC) openings and bill payments. BPC is engaging in discussions with Bangladesh Bank (BB) to ensure a stable supply of dollars to the energy sector.
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