THE New Nation on Tuesday said that the Ministry of Finance asked Bangladesh Petroleum Corporation (BPC) to return Tk 2,630 crore which was provided to it as support for importing fuel oil in the last 14 years. As oil prices in international markets have fallen drastically, government has no intention to adjust oil prices saying that fuel oil prices would not be cut soon to increase the financial capacity of BPC for averting any future crisis.Finance Ministry’s asking for return of subsidy money from BPC and its refusal to adjust the prices downward in line with global market prices amply suggest this can’t be the policy of a people-oriented government in spite of having enough scope to reduce fuel prices and help the common people.Consumers in Bangladesh have missed out on the benefits of cheaper oil prices throughout 2015 as the government did not adjust the prices downwards in line with the plunge in the global market. Many countries such as India, Pakistan, and Sri Lanka have appreciably adjusted the domestic fuel oil price. The Bangladesh government last revised the price of oil three years ago, when a barrel of crude oil cost nearly three times greater than the current price at around $40 a barrel. The average import price of crude oil was a little over $75 a barrel in fiscal 2014-15, down from nearly $110 a barrel in the previous year. The average price this year dropped to $52 a barrel, according to Bangladesh Petroleum Corporation (BPC).Government’s stance is depriving the consumers of the benefits of falling oil prices. Together with favourable commodity prices, cheaper oil has contributed to a rapid declaration of inflation in several countries; but it is not reflected in the Bangladesh economy because of the non-adjustment of oil prices. These actions show a lack of concern and the government appears to be least bothered as it has given commitment to International Monetary Fund (IMF) to keep fuel prices at the present rate.But analysts say that the government needs funds for alleviating its increasing disbursements and loans like revised pay-scale, huge loan-taking from public and private banks, massive infrastructural expenditures and these have compelled it to ask for subsidiary money from BPC. Some analysts also say that for mitigating budgetary deficiency, government is not adjusting the fuel oil price as per the drastic fall of oil prices in the international market.A report reveals that BPC has to spend Tk.12,000 crore per year as subsidy -which mostly goes to quick rental power plants. The BPC currently has outstanding debts worth around Tk 4,000 crore. Since BPC is in a mammoth debt crisis, the government’s asking for the return of Tk 2,630 crore won’t be a sensible act and it is akin to grabbing public money at an opportunity. From the public concern, the government is following no economic rationale with BPC and with the public as well.
