State-owned Bangladesh Petroleum Corporation (BPC) is facing serious troubles in selling fuel to Biman Bangladesh Airlines as its outstanding dues have hit around Tk 2200 crore. The BPC could not realise the arrears despite various initiatives. In this situation, Biman has further brought fuel at taka 39 crore without paying the arrears. BPC has decided to convene an inter-ministerial meeting to resolve the issue, BPC official said.
Padma Oil Company Limited (POCL), a subsidiary of BPC, supplies aviation fuel to different domestic and foreign airliners. The company has long been selling fuel on credit only to the national flag carrier. On an average, POCL supplies jet fuel worth Tk 50 crore to the state-owned airliner every month.
POCL has to supply fuel to Biman by borrowing money. As a result, POCL has to pay interest for bank loan as Biman has become a defaulter and failed to pay oil price.
An official of POCL said, “The arrears of Biman are increasing day by day...that is becoming a trouble. Since we are also counting interests against bank loan, we cannot take the responsibility of others' failure.”
According to POCL, arrears against fuel sold to Biman stand around Tk 2,180 crore between February 2011 and December, 2019. BPC could not realise the money even after circulating multiple letters and holding meetings.
Biman and BPC signed an agreement in 2019 to realise the arrears. According to the agreement, The Biman Bangladesh Airlines agreed to pay in installment their bill by 10th of each month. However, Biman failed to make payment accordance with the agreement.
The senior secretaries of the three ministries also met last October to discuss the issue. But there was no solution.
In this context, BPC Chaimrmen Abu Bakr Siddique said, "Negotiations are underway to collect the arrears from Biman. Both are government organisations. So, the problem has to be solved through discussion. That is why, we are writing to the Energy Divsion. It has been decided to hold an inter-ministerial meeting.”
According to Biman Bangladesh, they pay their due payment during Hajj. But last year, the Hajj halted due to Coronavirus.
Earlier, BPC was decided to stop selling fuel to Biman Bangladesh Airlines on credit. Later the BPC started again supplying fuel to the national flag carrier under special directives of the government.
