Bangladesh Petroleum Corporation (BPC) has sought Tk 8,900 crore as subsidy from the authorities to make up the losses incurred this fiscal year due to a rise in petroleum fuel prices in the international market.
The state-run fuel importer sought the fund from the finance ministry through the Energy and Mineral Resources Division (EMRD).A BPC high official said they incurred the loss for selling petroleum fuels at subsidised rates in the local market.
State-run BPC spends over Tk 30,000 crore annually to procure around 60 lakh tonnes of petroleum fuels.
“Our petroleum fuel demand will cross 70 lakh tonnes next year,” said the official.
The government plans to mobilise Tk 8,400 crore from Islamic Trade and Finance Corporation (ITFC) to finance the costly petroleum import, another official said.
BPC has already borrowed $600 million from ITFC at a 3.8 per cent interest, officials informed.
But the interest rate has significantly increased. “ITFC has fixed the interest rate at 4.5 per cent as the international fuel prices increased significantly,” they added. The latest loan proposal will be reviewed by the hard-term loan committee chaired by finance minister AMA Muhith soon, officials said.