BPC pays over Tk1,200cr extra for fuel imports due to Middle East war
Despite the surge, the government has kept domestic fuel prices unchanged, meaning BPC will absorb most of the extra expenditure as losses.
The ongoing conflict in the Middle East has sharply increased global fuel prices, forcing the state-run Bangladesh Petroleum Corporation (BPC) to spend an additional Tk1,200 crore to import 10 oil consignments in March.
Despite the surge, the government has kept domestic fuel prices unchanged, meaning BPC will absorb most of the extra expenditure as losses.
According to BPC data, global diesel prices jumped from $88.44 per barrel on 27-02 to $236.60 per barrel by Monday, marking an increase of nearly 167%.
Octane rose about 108% to $163.71 per barrel, while jet fuel climbed roughly 155% to $228.40 per barrel.
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The effect of the price spike is evident in recent shipments.
On 16-03, the vessel MT Chang Hang Hong Tu delivered 203,126 barrels of diesel. Initially estimated at Tk263 crore, the shipment cost Tk425 crore, adding Tk162 crore in extra expenses.
Similarly, MT Rafales Samurai, which arrived on 14-03 with nearly 200,000 barrels of diesel, saw its cost rise from Tk263 crore to Tk431 crore, an additional Tk168 crore.
Seven diesel-laden vessels have already arrived, with at least six incurring higher-than-expected costs, and three more are currently en route.
BPC General Manager (Finance) Mohammad Jahangir Kabir said seven vessels carrying an average of 27,000 tonnes of fuel reached Chattogram port by 25-03, with three more expected before month-end.
He explained that international oil prices are calculated based on the average market rate two days before and after loading. "As prices are rising almost daily, each vessel is adding Tk100-150 crore in extra costs," he said.
"Based on this, the extra expenditure for 10 vessels could reach at least Tk1,200 crore. Since local fuel prices have not changed, BPC will bear these losses," Kabir added.
He noted that BPC has been profitable in recent years and can absorb the losses for a few months. "We are not recommending a fuel price hike at this stage. Policymakers will review the situation," he said.
Kabir also assured that there is no immediate diesel shortage. About 150,000 tonnes have been imported from Singapore and Malaysia this month, 15,000 tonnes arrived via pipeline from India, and another 7,000 tonnes are expected by month-end. He urged consumers not to panic-buy or stockpile fuel.
