Oil prices may be adjusted up to int'l rates
Unb, Dhaka
The caretaker government considers adjusting petroleum prices up to international market rates and cutbacks in duties on fuel imports to bail out the loss-incurring Bangladesh Petroleum Corporation (BPC). In a meeting yesterday, the council of advisers discussed the measures, and also ways of stopping reported oil smuggling. The meeting, chaired by Chief Adviser Fakhruddin Ahmed, discussed the ways of making the state-owned BPC, now incurring losses, a financially profitable public concern. During the meeting, a number of proposals were discussed to rescue the BPC from under the growing burden of losses. The meeting was informed that BPC now needs at least Tk 1500 crore to import fuels to meet domestic demand. Finance ministry proposed to provide Tk 600 crore, while the council of advisers discussed ways of arranging the rest of the amount, including continuing discussion with the IDB for receiving credits. The meeting also discussed ways of preventing reported smuggling of fuels to neighbouring countries. A proposal for supply of oil to Biman on 25 percent credit also came up for discussion. Chief Adviser's Press Secretary, Syed Fahim Munaim, briefed newsmen about the outcome of the meeting that lasted over two hours. The council also decided that Bangladesh will establish diplomatic ties with three UN member states-- Montenegro, San Marino and Andorra. On behalf of Bangladesh, its permanent representative in the United Nations will formally accomplish the task of setting up the diplomatic links.
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