First, consider the case of the Bangladesh Petroleum Corporation (BPC). Recently, much of the extra expenditure has been interpreted by many as a loss or subsidy. In reality, this is not entirely the case. BPC has consistently earned profits over the past few years. In the last fiscal year alone, the corporation made a profit of 4,300 crore taka. Therefore, the current shortfall is not an entirely new burden for BPC.

The corporation has the capacity to cover these costs from its past earnings. These are BPC’s accumulated revenues, which were primarily collected from consumers in advance. Due to flaws in the fuel pricing structure, consumers have paid an additional 15-22 percent in fuel costs, which has helped increase BPC’s profits.

\A similar picture is seen in other energy companies, including RPGL (Rupantarita Prakritik Gas Company Limited). Although their profits are comparatively lower, they are not entirely operating at a loss. Therefore, interpreting all expenditures in the energy sector directly as subsidies is not fully consistent with reality.