Middle East war causes Tk17,039cr BPC losses since March: Energy minister
Iqbal Hassan Mahmood said despite the losses, BPC has continued fuel imports over the past three months using its own funds to ensure uninterrupted supply.
Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood today (22 June) told parliament that the Bangladesh Petroleum Corporation (BPC) incurred losses of around Tk17,039.56 crore between March and 11 June due to rising international fuel prices amid the ongoing conflict involving Iran, the United States and Israel.
The minister made the remarks in a written response to a question from Satkhira-2 lawmaker Muhammad Abdul Khaleq in today's parliament session. The information was presented in the question-and-answer session tabled in the house.
He said the government did not raise domestic fuel prices in line with the full extent of increases in the international market in consideration of public interest.
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Fuel prices may be reduced in the local market if global prices fall to a tolerable level, he added.
In a written question, Khaleq sought information on the country's current fuel reserves and whether the government has any plans to reduce fuel prices.
Responding to the query, Iqbal said that, as of 1 June, the country's remaining recoverable natural gas reserves stood at 7.63 trillion cubic feet.
He said the latest updated estimate of gas reserves in the country's 29 discovered gas fields was 29.74 trillion cubic feet in 2024, while a total of 22.11 trillion cubic feet had been extracted up to 31 December 2025.
The minister also presented fuel stock data as of 10 June.
According to the figures, Bangladesh currently has 397,199 tonnes of diesel, 44,083 tonnes of octane, 19,164 tonnes of petrol, 76,712 tonnes of furnace oil, 41,329 tonnes of jet fuel, 13,916 tonnes of kerosene and 1,026 tonnes of marine fuel, bringing the total fuel stock to 529,056 tonnes.
Iqbal said international fuel prices rose sharply from March due to the conflict in the Middle East. Although prices started easing somewhat from May, domestic fuel prices remain significantly lower than international market levels.
Under the automatic fuel pricing formula, the cost of diesel was Tk155.46 per litre and octane Tk148.93 per litre in April. However, from 19 April, the government reset diesel prices from Tk100 to Tk115 per litre, octane from Tk120 to Tk140, petrol from Tk116 to Tk135, and kerosene from Tk112 to Tk130.
He said that although diesel's cost rose to Tk234.79 per litre and octane's cost to Tk165.56 per litre in May, the government kept fuel prices unchanged during that month.
For June, diesel's cost stood at Tk175.22 per litre and octane's at Tk160.70 per litre. Despite this, the government did not increase diesel prices, although octane, petrol and kerosene prices were raised by Tk5 per litre.
According to the minister, international diesel prices increased by 152%, while domestic diesel prices were raised by only 15%. Similarly, international octane prices rose by 82%, whereas domestic octane prices increased by 21%.
Iqbal said international fuel prices remain above the break-even level, forcing BPC to absorb losses of around Tk78 crore daily from the sale of diesel, octane and petrol.
Despite the losses, BPC has continued fuel imports over the past three months using its own funds to ensure uninterrupted supply, he said.
The minister added that the government would consider lowering fuel prices in the domestic market once international prices fall further and reach a sustainable level.
