Bangladesh Petroleum Corporation (BPC) is grappling with a dollar shortage, accumulating overdue import bills of $670 million as of September 30, 2023, compared to $50 million in mid-August. This sharp increase in overdue payments poses a potential risk of additional costs through supplier penalties. To address the crisis, the Energy Division has urgently sought assistance from the Bangladesh Bank to secure the required dollars. BPC imports 5 lakh tonnes of refined and 1 lakh tonne of crude oil monthly, necessitating the opening of 17 to 18 letters of credit (LCs) at a cost ranging from $500 million to $600 million. Recent price hikes have further escalated monthly expenses by approximately 25%. The central bank has been cautious with dollar supply due to foreign exchange reserves and the forthcoming national elections.
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