BPC disagrees to give subsidized diesel to IPPs

Bangladesh Petroleum Corp. (BPC) expressed its disagreement over providing subsidized oil to rental and independent power plants (IPP) as the state-owned organization feared it will incur losses amounting to Tk1,500 crore (US$337.51 million) this fiscal year. BPC Chairman Anwarul Karim at a presentation to State Minister for Power and Energy Mohammed Enamul Huq, said that BPC is facing a financial crisis in procuring oil products to meet local demand. “The BPC would procure 47.50 lakh tons of petroleum fuels including additional 11 lakh tons of fuels next fiscal year (FY) to meet the demand as the Power Development Board (PDB) has already permitted the high speed diesel (HSD) and furnace oil (FO) fired series of power plants here.” He opined that the government must provide the HSD and FO to power plants based on international prices. (April 19, 2010)