The sales commission for three prominent oil companies—Jamuna Oil Limited, Meghna Petroleum Limited, and Padma Oil Limited—operating under the Bangladesh Petroleum Corporation (BPC) has been raised. Diesel: margin rose to Tk0.80 from Tk0.50 per litre, Kerosene: margin rose to Tk0.80 from Tk0.50 per litre, Octane: margin rose to Tk0.90 from Tk0.60 per litre and Petrol: margin rose to Tk0.90 from Tk0.60 per litre.
Effective immediately, a gazette notification issued by the ministry on Thursday outlined the substantial raise in margins. Specifically, the margin for diesel and kerosene sales has been elevated from Tk0.50 to Tk0.80 per liter, a 60% increment from the fixed rate established in 2016. Similarly, the margins for octane and petrol have surged from Tk0.60 to Tk0.90 per liter.
The decision to augment margins came about following a proposal from the Bangladesh Petroleum Corporation (BPC) nearly a year ago, citing the diminishing incomes of the state-run entities. After thorough scrutiny, the ministry deemed it necessary to implement the increase, acknowledging the financial challenges faced by these companies.
While the listed firms have experienced a decline in operating income, they have maintained profitability through non-operating income streams, particularly interest income. Officials anticipate that the recent surge in margins will significantly impact operating income, thereby enhancing overall profitability.
During the first half of the current fiscal year, Padma Oil reported a total income of Tk134 crore from petroleum product sales, slightly lower than Tk138 crore from the corresponding period last year. However, its operating income plummeted by 54% to Tk6 crore compared to the previous fiscal year.
Similarly, Jamuna Oil recorded an income of Tk72 crore in the July-December period of FY2024, down from Tk79 crore in the same period of FY2023, with operating income declining by 33% to Tk14 crore. In contrast, Meghna Petroleum saw a remarkable 55% increase in operating profit, reaching Tk175 crore during the same period.Notably, these companies generate substantial income from Fixed Deposit Receipts (FDRs), supported by significant cash holdings.
Padma Oil remains the top performer in oil sales, having sold 26.89 lakh tonnes of oil in the financial year 2022-23. Meghna Petroleum secured the second position with 26.20 lakh tonnes of petroleum products sold, followed by Jamuna Oil with 19.48 lakh tonnes in sales volume for the last fiscal year.
Source:https://bangladeshpost.net