Bangladesh Bank has increased its foreign currency support to the Energy and Mineral Resources Division to facilitate the import of petroleum fuels and gas. The division is now receiving more than $200 million per week, up from previous levels, to settle bills with foreign suppliers. Outstanding payments to foreign gas and fuel suppliers have exceeded $500 million, with the Bangladesh Petroleum Corporation owing $220 million and Petrobangla $280 million. The recent foreign currency crunch has raised concerns about the smooth import of petroleum and LNG, as well as purchases from foreign-operated local gas fields. Bangladesh needs to import 6.5 million tonnes of petroleum fuels annually, costing $6-7 billion, and 5.06 million metric tonnes of LNG, costing $4.555 billion. The country also faces a $4.5 billion expenditure on electricity from private power companies. Foreign currency reserves fell below $19 billion in 2023 from over $48 billion in 2022, prompting a temporary reduction in LNG imports last year.
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