BPC posts Tk2,050cr profit amid fuel price hike: CPD
Special Correspondent :
Riding on the back of fuel price hikes under the government’s automated pricing mechanism, the state-run Bangladesh Petroleum Corporation (BPC) posted a robust profit of Tk 2,050 crore in the fiscal year 2024-25, according to the Centre for Policy Dialogue (CPD).
The independent think tank revealed the figures during a dialogue titled “Power and Energy Sector in the National Budget for FY2025-26: Reflections on the Priorities for Energy Transition” held at the BRAC Centre in Dhaka on Thursday.
Despite the strong performance this year, CPD cautioned that BPC’s profit is likely to fall sharply in the next fiscal year, projecting a reduced profit of Tk 615 crore for FY2025-26.
This anticipated downturn is attributed to rising global oil prices, driven by escalating geopolitical tensions in the Middle East, particularly between Israel and Iran, which are putting pressure on BPC’s profit margins.
“While automated fuel pricing has boosted BPC’s revenues this year, the outlook remains uncertain amid volatile international markets,” said Dr Khondaker Golam Moazzem, Research Director at CPD.
Energy expert M Shamsul Alam from the Consumers Association of Bangladesh (CAB) and other sector stakeholders also spoke at the event.
In addition to BPC, two Petrobangla subsidiaries – BAPEX and RPGCL – reported profits in FY2024-25. CPD stated that BAPEX earned Tk137 crore, while RPGCL posted Tk41 crore, largely due to increased gas prices in the industrial sector.
Looking ahead, CPD projects further gains for both companies in FY2025-26, with BAPEX expected to earn Tk258 crore and RPGCL Tk49 crore, thanks to VAT exemptions on LNG imports and potential gas tariff hikes.
However, the outlook is grimmer for the Bangladesh Power Development Board (BPDB). CPD estimated BPDB’s losses at Tk8,803 crore in FY2024-25, with a further rise to Tk9,043 crore expected in FY2025-26, highlighting the persistent financial challenges in the power sector.
The dialogue underscored the need for reforms in pricing, subsidy management, and energy transition planning to balance fiscal sustainability with consumer interests.