Bangladesh Petroleum Corporation (BPC) has raised concerns over mounting losses in jet fuel sales, urging the Bangladesh Energy Regulatory Commission (BERC) to approve a price adjustment to align with soaring global rates.
The corporation has already submitted a request to the regulator, but the matter remains unresolved.
BPC Chairman Amin Ul Ahsan highlighted the issue during an inter-ministerial meeting on Thursday, 20 February.
Sources present at the meeting, speaking on condition of anonymity, confirmed the development. According to these sources, the chairman pointed out that while the corporation had enjoyed some profit when international prices were lower, the recent surge in rates has led to financial losses. Without an immediate price adjustment, the situation is expected to worsen.
Previously, BPC had the authority to determine jet fuel prices independently. However, a directive issued by the Ministry of Power, Energy, and Mineral Resources on 18 September transferred this responsibility to BERC.
Following this regulatory change, BPC formally submitted a request for a price revision.
BERC Chairman Jalal Ahmed stated that the commission is actively reviewing BPC’s proposal.
A technical committee has been formed to assess the pricing model, he said, adding that since there was no pre-existing formula for jet fuel pricing, discussions with BPC were held to understand their methodology.
Additionally, the committee is benchmarking jet fuel prices in key aviation hubs such as Singapore, Kuala Lumpur, Dubai, and Jeddah, while also considering pricing in expatriate-heavy routes. BPC has referenced pricing structures in Kolkata, Karachi, and Delhi to support its case.
BERC was established in 2003 under the Energy Regulatory Commission Act as an independent and quasi-judicial body to ensure accountability in gas and electricity distribution while safeguarding consumer rights.
Although the commission officially commenced operations in 2008, its authority remained limited to electricity and gas pricing due to pending regulatory approvals for setting fuel prices.
Over the years, 13 regulatory guidelines have been formulated, while 12 others have remained in limbo for over a decade.
In 2023, the previous government amended the law to allow fuel price adjustments through executive orders, effectively sidelining BERC from its regulatory role.
This move curtailed the commission’s ability to conduct public hearings, which had previously exposed irregularities in utility pricing.
The decision, critics argued, allowed the ruling administration to exercise unchecked control over energy pricing.
However, following the formation of the interim government, a gazette notification issued on 27 August revoked the executive authority over power and gas pricing, reinstating BERC’s regulatory control.
Subsequently, the commission was also entrusted with oversight of jet fuel pricing.
Despite these reforms, the prices of diesel, kerosene, petrol, and octane remain subject to adjustments through executive orders.
