Bangladesh Petroleum Corporation (BPC) has reported steady profits since the government introduced an automatic fuel pricing formula in March 2024, officials have said.

According to the finance ministry data, BPC earned around Tk 20.50 billion in the fiscal year 2024–25. The chairman confirmed that profits have also been recorded in the first two and a half months of the current fiscal year, though no figures were disclosed.

Under the new system, BPC earns up to 2% on diesel and as much as 10% on petrol and octane. Current prices remain unchanged from July at Tk 102 per litre for diesel, Tk 114 for kerosene, Tk 118 for petrol, and Tk 122 for octane.

Officials say kerosene was priced above diesel in recent months to curb fuel adulteration. “After increasing kerosene prices, the alleged fuel mixing has stopped,” Mr Ahsan said.

The pricing formula factors in international benchmarks, import duties, taxes, margins, and administrative costs. It was introduced on IMF advice as part of a $4.7bn loan package aimed at reducing subsidies.

Fuel prices in Bangladesh had previously been set by government order since independence, with BPC often relying on subsidies during periods of global oil price volatility.