BPC incurs Tk27,669cr loss on fuel in 2026

The Bangladesh Petroleum Corporation (BPC) incurred a loss of Tk27,669.79 crore in fuel oil trading between March and 25 October this year as the government continued providing subsidies to keep fuel prices within public purchasing power.

Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood disclosed the figures in the Jatiya Sangsad while responding to a tabled question from Jamaat-e-Islami lawmaker Syed Zainul Abedin.

The minister informed parliament that retail fuel prices would be readjusted downward in line with the automated pricing formula once global market prices decline.

To bolster energy security, Bangladesh has commenced importing liquefied petroleum gas (LPG) through direct government-to-government (G2G) agreements following memoranda of understanding (MoUs) signed with the United States and Algeria, he said.

Preliminary work, including land acquisition, has begun in Chattogram’s Sitakunda to establish a new LPG storage and bottling plant with an annual capacity of one lakh metric tonnes. Similar projects are also underway in Matarbari, Mongla, and Tangail’s Elenga, the minister added.

Addressing subsidies across the wider energy sector, Mahmud noted that the government disbursed Tk43,196 crore in power sector subsidies during the 2025–26 fiscal year. Whilst the average power generation cost stood at Tk11.16 per unit and the purchase rate from private power plants was Tk13.20 per unit, electricity was sold at Tk10.40 per unit.

During the same fiscal period, Tk14,600 crore was allocated in subsidies for liquefied natural gas (LNG) imports, which currently account for roughly 35 per cent of the country's total gas supply.

Clarifying billing regulations, the minister assured lawmakers that prepaid electricity meters carry no special charges, noting that demand charges and VAT apply equally to both prepaid and postpaid connections.

Consumers who purchase and install their own meters from the open market are exempt from monthly meter rent, he added.