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the first time.

PDB is the main consumer of BPC’s furnace oil, which is used in government-run oil-fired power plants.

The country currently has 5,634 megawatts of furnace oil-based power generation capacity, about 20 percent of total capacity. BPC sells around 8–9 lakh tonnes of furnace oil annually.

Of this, about 1,200MW of capacity is government-owned and fully dependent on BPC. In the 2024–25 fiscal year, the unit cost of electricity from these plants was Tk 27.39 per kilowatt-hour, compared to an average generation cost of Tk 12.98 per kWh.

Despite receiving Tk 38,637 crore in government subsidies that year, PDB incurred a loss of Tk 17,021 crore. In contrast, BPC posted a profit of Tk 4,316 crore from oil sales to PDB.

“PDB remains in loss as electricity is sold below production cost. The loss increases when furnace oil is bought at a higher rate from a government agency,” PDB said.

PDB proposed fixing the furnace oil price at Tk 50.83 per litre, based on a weighted average of BPC’s local production and import costs.

BPC proposed reducing the price by Tk 5 to Tk 81 per litre, based on Platts rates from October to December last year. Meanwhile, BERC’s technical evaluation committee recommended a price of Tk 74.04 per litre.

PDB Chairman Md Rezaul Karim said power generation costs are rising due to high fuel prices, adding that adjustments are needed to protect consumers.

“We do not want any company to become unprofitable, but it is not right for one company to make a profit at the expense of another,” he said.

BPC General Manager (Accounts) ATM Selim said the global price cited by PDB does not include additional costs such as duties and charges.

BPC and three distributor companies -- Padma, Meghna, Jamuna, as well as Standard Asiatic Oil Company also proposed higher distribution margins, claiming furnace oil sales are loss-making despite overall profitability.

During cross-examination, the companies acknowledged distributing profit bonuses and dividends of up to 180 percent to shareholders.

“Most earnings came from non-operating segments, not from core business,” a BPC representative said.

BERC Chairman Abdul Jalil said a decision would be made after reviewing all data and evidence to ensure no party gains unfairly.

Written submissions will be accepted until February 3, after which BERC will announce its decision.