Upward trend of fuel prices may present BPC with losses next year

State Minister for Power, Energy and Mineral Resources Nasrul Hamid yesterday apparently ruled out the possibility of cutting fuel prices by saying that Bangladesh Petroleum Corporation (BPC) may face loss in the next fiscal year, if the current upward trend of fuel prices continues in the international market, reports UNB.
"The fuel price is now showing an upward trend (in the global market). Besides, the exchange rate of Taka against US dollar is increasing regularly (BDT lost its prices). If this trend continues, BPC may face loss in the next fiscal year," he told Parliament replying to a written question from Rustum Ali Faraji MP (Pirojpur-3).
He said the upward trend of fuel prices has continued for the last one year in international market. The lowest price of fuel was in January 2016 in the global market. The average fuel price was US$ 33.85 per FOB (barrel) in January 2016, which went up to US$ 66.03 in April 2017, he added.
BPC still has government loan of Tk 27,419.81 crore outstanding as it earlier incurred loss by selling fuel at subsidized rates, the junior minister said.
Following the fall in fuel prices in the international market, the government cut the local prices of fuel on two occasions on April 1, 2016 and April 25, 2016, he noted.
In reply to another written question from Nizam Uddin Hazari MP (Feni-2), Nasrul Hamid said now 34 power plants with 11,363 megawatt capacity are under implementation. The power plants will go in operation in phases between 2017 and 2021.
He said now the power generation capacity has increased to 15,379 megawatt now from only 4,942 megawatt in 2009.
The government continues its activities to increase the power generation capacity at 24,000 megawatt with a view to ensuring cent percent electricity coverage in the country by 2021, the state minister said.

Upward trend of fuel prices may present BPC with losses next year

State Minister for Power, Energy and Mineral Resources Nasrul Hamid yesterday apparently ruled out the possibility of cutting fuel prices by saying that Bangladesh Petroleum Corporation (BPC) may face loss in the next fiscal year, if the current upward trend of fuel prices continues in the international market, reports UNB. The fuel price is now showing an upward trend (in the global market). Besides, the exchange rate of Taka against US dollar is increasing regularly (BDT lost its prices). If this trend continues, BPC may face loss in the next fiscal year, he told Parliament replying to a written question from Rustum Ali Faraji MP (Pirojpur-3). He said the upward trend of fuel prices has continued for the last one year in international market. The lowest price of fuel was in January 2016 in the global market. The average fuel price was US$ 33.85 per FOB (barrel) in January 2016, which went up to US$ 66.03 in April 2017, he added. BPC still has government loan of Tk 27,419.81 crore outstanding as it earlier incurred loss by selling fuel at subsidized rates, the junior minister said. Following the fall in fuel prices in the international market, the government cut the local prices of fuel on two occasions on April 1, 2016 and April 25, 2016, he noted. In reply to another written question from Nizam Uddin Hazari MP (Feni-2), Nasrul Hamid said now 34 power plants with 11,363 megawatt capacity are under implementation. The power plants will go in operation in phases between 2017 and 2021. He said now the power generation capacity has increased to 15,379 megawatt now from only 4,942 megawatt in 2009. The government continues its activities to increase the power generation capacity at 24,000 megawatt with a view to ensuring cent percent electricity coverage in the country by 2021, the state minister said.