Dhaka, Sep 29 (V7N)- Bangladesh Petroleum Corporation (BPC) Chairman Dr Md Rafiqul Islam has said the government does not currently want to increase fuel prices in the domestic market despite worsening tensions in the Middle East.
He said Bangladesh faces no immediate crisis in fuel imports, payments or storage and that arrangements have been made to ensure supplies through December.
The BPC chairman said the recent Tk20-per-litre increase in fuel prices was taken under pressure from rising international prices and higher transportation and freight costs. The adjustment came in the third week of September rather than at the beginning of the month.
Rafiqul Islam said the price increase had been necessary under the circumstances and expressed hope that the government would provide support to help manage BPC's financial pressure. Recent BPC figures show that the corporation incurred substantial additional costs because of higher international fuel prices and freight charges.
He said BPC has sufficient fuel stocks and that procurement arrangements for the required quantities have been completed through December. The corporation has also been working with the Finance Ministry on financial arrangements to maintain imports.
According to the chairman, BPC currently has the capacity to maintain fuel storage for around 45 days. Work is also underway to expand storage capacity to cover up to 90 days of demand.
The government has been facing pressure over fuel supplies and prices amid disruptions to international energy markets and shipping routes linked to the Middle East crisis. BPC has also been exploring alternative crude-oil sources as security risks around major shipping routes have increased.
Rafiqul Islam said BPC would try to avoid another increase in domestic fuel prices despite uncertainty in the international market.
He expressed hope that even if the current situation worsens, the government may not need to raise prices again. He also said that if BPC is able to procure fuel at lower international prices in the future, the government could consider reducing domestic prices.
BPC has previously said that no fuel supply shortage is expected through December, while efforts continue to strengthen procurement and storage capacity.
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