Despite the prolonged decline in international fuel oil prices, the domestic market in Bangladesh has not seen corresponding reductions. The state-owned oil importer and marketing company, Bangladesh Petroleum Corporation (BPC), had been generating significant profits for seven consecutive years until 2021. However, since the global oil prices began to rise, BPC has encountered substantial losses, resulting in record-high oil prices in the country.
The latest ‘Bangladesh Economic Survey, 2023’ released by the Ministry of Finance highlights BPC’s financial struggles, making it the state-owned enterprise with the highest losses in the current fiscal year 2022-2023. BPC had experienced major losses in previous years, such as in 2011-12 when it reported a loss of Tk 11,371.31 crore. Despite achieving high profits, the government has faced criticism for not reducing fuel oil prices domestically. As a result, BPC has incurred losses in diesel and other types of oil, contributing to its overall financial downturn. The government is now considering policy changes, including the withdrawal of subsidies on fuel oil, to align domestic prices with international market trends.
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