Fuel sale margin for state-run companies soars 60%
The margin on diesel and kerosene sale has been increased to Tk0.80 per litre from Tk0.50 commission fixed in 2016, while the octane and petrol margins have been raised to Tk0.90 from Tk0.60 per litre
Highlights:
- Diesel: margin rose to Tk0.80 from Tk0.50 per litre
- Kerosene: margin rose to Tk0.80 from Tk0.50 per litre
- Octane: margin rose to Tk0.90 from Tk0.60 per litre
- Petrol: margin rose to Tk0.90 from Tk0.60 per litre
The margin on fuel sales has been raised by 60% for the three state-owned oil marketing companies - Jamuna Oil, Meghna Petroleum and Padma Oil – to help them overcome declining profits.
On Thursday, the Ministry of Power, Energy and Mineral Resources issued a gazette notification, making the decision immediately effective.
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The margin on diesel and kerosene sale has been increased to Tk0.80 per litre from Tk0.50 commission fixed in 2016, while the octane and petrol margins have been raised to Tk0.90 from Tk0.60 per litre.
About a year ago, the Bangladesh Petroleum Corporation (BPC) proposed for increasing the margins, citing a decline in incomes of the state-run entities.
The ministry decided to increase the margins after scrutinising the matter.
Despite experiencing a fall in operating income, the listed firms are making profits in terms of non-operating income, interest income in particular.
Officials of the companies said the latest increase in margins might have a significant impact on their operating income, leading to higher profits.
During the first half of the current fiscal year, Padma Oil's total income from petroleum product sale stood at Tk134 crore, which was Tk138 crore in the same period one year ago.
But its operating income was Tk6 crore, which was 54% lower than that of the last fiscal's corresponding period.
Similarly, Jamuna Oil posted a Tk72 crore income in the July-December period of FY2024, down from Tk79 crore in the same period of FY2023, with a 33% fall in operating income to Tk14 crore.
Only Meghna Petroleum could post higher growth in operating income during the said period with a 55% higher operating profit of Tk175 crore.
The companies generate a significant income from Fixed Deposit Receipts (FDRs), supported by substantial cash holdings.
Padma Oil secured the top position in oil sales, having sold 26.89 lakh tonnes of oil in the financial year 2022-23.
Last fiscal year, Meghna Petroleum came second by a small margin with 26.20 lakh tonnes of petroleum products sale, while Jamuna Oil secured the third position with 19.48 lakh tonnes sales figure.
