BPC owes $533 m to six foreign fuel suppliers

Special Correspondent: Six foreign suppliers of fuel are pressuring the Bangladesh Petroleum Corporation (BPC) for overdue payments. The amount BPC owes these companies has been increasing daily.
Currently, BPC’s debt to foreign fuel suppliers stands at approximately $533 million. Some companies have reported that they have not received their payments even after three months.
On August 1, the outstanding amount was $504 million and by August 14, this had increased to $533 million.
To address the pressure from foreign suppliers, BPC officials held a virtual meeting with various companies on August 14. BPC’s Director of Finance, Abdul Matin, told media that while the corporation has sufficient funds, a shortage of dollars at the bank is preventing timely payments. Efforts are being made to expedite payments to foreign suppliers.
Matin also assured that the overdue payments have not disrupted fuel supply.
Currently, Vitol Asia Private Limited of Singapore is BPC’s largest creditor, with a claim of $209.66 million. This company has been pressuring BPC to settle its debt.
Other creditors include:Petco Trading Labuan Company Limited (PTLC) of Malaysia: $23 million, Emirates National Oil Company (ENOC) of the UAE: $28 million, PT BumiSiakPusako (BSP) of Indonesia: $47 million, Indian Oil Corporation Limited (IOCL): $34 million, Unipek Singapore Private Limited: $60 million, These foreign suppliers sent 29 shipments of fuel to Bangladesh between April and July.
In the first week of this month, Vitol Asia and ENOC had suspended cargo discharge due to outstanding payments, but resumed after discussions with local agents of BPC.
BPC officials attribute the payment delays to the ongoing dollar shortage at banks.
Bank documents reveal that an LC for $24.67 million was opened with Sonali Bank on April 1 for importing octane from Vitol Asia. BPC had pledged to make payments in two installments by April 28, but only $11.01 million out of six installments was paid in June and July. Vitol Asia still has $209.66 million due for ten shipments.
Similarly, two LCs were opened with Sonali Bank on May 28 for importing diesel and octane from BumiSiakPusako. The total LC amounts were $26.48 million and $21.42 million. Despite a one-month payment term, BPC has paid just over $1 million.
Another LC for $27.95 million was opened with Sonali Bank on May 28 for diesel from ENOC.
Local agents of these foreign companies have stated, on condition of anonymity, that BPC has yet to settle the mentioned payments and that they have repeatedly contacted BPC’s senior officials about this issue.