Dhaka: Bangladesh is struggling to pay for imported fuel due to a dollar shortfall, letters reviewed by Reuters show, with the state petroleum company owed more than $300 million as it faces an “alarming shortfall in fuel reserves”. facing. All import and marketing of fuel in the country of about 170 million people is handled by Bangladesh Petroleum Corp, which has asked the government to allow domestic commercial banks to pay dues with India in rupees.
The country’s dollar reserves have plummeted by more than a third since Russia’s invasion of Ukraine in February last year, falling to a seven-year low of around $30.2 billion as of May 17. Bangladesh, heavily dependent on energy imports, has been grappling with power cuts and fuel shortages that have hurt its export-oriented clothing industry.
“Due to shortage of foreign exchange/dollars in the domestic market and non-fulfillment of demand for US dollars by the central bank, commercial banks are unable to make payments for imports in time,” bpc told ministry of power In the letter of 9 May. This was followed by a letter in April that warned, “If it is not possible to import fuel according to the import schedule drawn up for May, supply disruptions across the country could result in dangerous shortfalls in fuel stockpiles.” Might be possible.”
The ministry, BPC and the central bank did not respond to calls seeking comment. BPC imports 500,000 tonnes of refined oil and 100,000 tonnes of crude oil every month. The April letter said that several fuel suppliers had either sent goods less than the stipulated time or had threatened to stop supplies. Creditors included China’s state-owned trading arm Unipec. SinopecVitol, EnochIndian Oil Corp, PetroChina and Indonesia BSP, it said. “Many companies are threatening to stop supplies while others are sending less than planned,” said a BPC source.
The country’s dollar reserves have plummeted by more than a third since Russia’s invasion of Ukraine in February last year, falling to a seven-year low of around $30.2 billion as of May 17. Bangladesh, heavily dependent on energy imports, has been grappling with power cuts and fuel shortages that have hurt its export-oriented clothing industry.
“Due to shortage of foreign exchange/dollars in the domestic market and non-fulfillment of demand for US dollars by the central bank, commercial banks are unable to make payments for imports in time,” bpc told ministry of power In the letter of 9 May. This was followed by a letter in April that warned, “If it is not possible to import fuel according to the import schedule drawn up for May, supply disruptions across the country could result in dangerous shortfalls in fuel stockpiles.” Might be possible.”
The ministry, BPC and the central bank did not respond to calls seeking comment. BPC imports 500,000 tonnes of refined oil and 100,000 tonnes of crude oil every month. The April letter said that several fuel suppliers had either sent goods less than the stipulated time or had threatened to stop supplies. Creditors included China’s state-owned trading arm Unipec. SinopecVitol, EnochIndian Oil Corp, PetroChina and Indonesia BSP, it said. “Many companies are threatening to stop supplies while others are sending less than planned,” said a BPC source.