Diesel draining BPC of any profits: Chairman

Although the Bangladesh Petroleum Corporation (BPC), the lone importer of fuel oil in the country, is making profit on almost all types of fuel, the organisation as a whole is incurring a loss due to the mounting demand for diesel.

As diesel is a highly consumed product, it is draining the BPC's coffers, said BPC Chairman ABM Azad on Tuesday.

"If we want to reach break-even, the price of refined oil needs to be dropped to $103 per barrel, which is just below $105 now," he said. 

Speaking at a press conference on the sinking of an oil tanker in the Meghna river near the island district of Bhola, he said no environmental damage was observed after the tanker capsized.

On the financial state of the BPC, he said, "In November, our overall loss was Tk43 crore and we incurred losses of up to Tk9,000 crore from February to November 2022." 

The corporation posted a profit of Tk233 crore in November from sales of octane, petrol and jet fuel, he added. 

In response to a question on fuel price cut at retail level adjusting to global prices, he said only the Energy and Mineral Resources Division of the Ministry of Power Energy and Mineral Resources can answer that. 

On 5 August, the Energy and Mineral Resources Division hiked diesel and kerosene prices by 42.5% along with petrol and octane prices by 51%.

The price of diesel increased by Tk34 to Tk114, petrol by Tk44 to Tk130 and octane by Tk46 to Tk135.

However, the price of diesel and kerosene is now Tk109, petrol Tk125 and octane Tk130 per litre after a flat Tk5 decline in prices of diesel, kerosene, petrol and octane per litre – a downward adjustment on 28 August.

BPC sees no environmental damage in oil tanker sink

Earlier on 25 December, a lighter vessel named OT Sagar Nandini-2, carrying 929 tonnes of diesel and octane fuel, sank in the Meghna river near Tulatuli in Bhola district after being hit by another vessel. 

After the accident, some oil spilled into the river. The capsized lighter ship was yet to be rescued till Tuesday evening. 

If the oil spill is not contained, it might damage the channel, which is known as a hilsa sanctuary, environment experts said. 

The BPC chairman, however, does not see any environmental damage due to the oil tanker sinking. 

"There were around 10 chambers in the tanker. One of the chambers was probably damaged and some of the oil spilled into the river, but it will not be more than 1.5 tonnes. This has already been recovered by local fishermen," he said.

The BPC chairman also said officials from the Department of Environment have already rushed to the spot to see if the oil is spreading and causing environmental pollution. 

"They have confirmed that no more oil is leaking into the water," he added. 

Talking about the capsized vessel recovery, ABM Azad said, "We immediately contacted the BIWTA for the rescue but were informed that they would not be able to rescue this tanker."

"Later, we reached out for private help and the rescue ship left at around 11am today. It is due to arrive at the spot by Tuesday evening."

Meanwhile, BPC and Padma Oil Company have formed two separate probe committees to investigate the cause of the accident, determine liability and assess the quantity of recovered fuel oil and damage.