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The Bangladesh Petroleum Corporation (BPC) decided Sunday to defer suspension of fuel supply to the Bangladesh Biman until the Eid ul-Fitre following intervention by the Prime Minister's office, sources said.
The Bangladesh Petroleum Corporation (BPC) had earlier decided to cut fuel supply to the Biman aircraft unless the latter cleared the arrear within a 48-hour deadline ending Sunday.
The crucial directive that reached the energy division on the day put an end to the row between the Civil aviation Ministry and Energy Division, though temporarily, over payment of arrear on account of fuel supply to the Biman.
The energy ministry had to extend its first cut-off date due to directive by the higher authority last week.
"The Bangladesh Petroleum Corporation (BPC) will supply jet fuel to the Biman until Eid festival considering the interest of the passengers," Adviser to the Energy Division Mahmudur Rahman told reporters.
The BPC will, however, will sit with the Biman after the Eid to settle the outstanding dues worth Tk 5.15 billion, he added.
State minister for civil aviation Mir Nasiruddin said the national flag carrier is in serious financial difficulty as it had to pay outstanding dues worth Tk 9.29 billion to the Bangladesh Petroleum Corporation (BPC) during the last four years.
"We are not reluctant to pay the dues but it is quite impossible to pay the dues in a day," he added.
Terming the recent row over payment between two ministries as a sad incident, Nasiruddin said the Biman has already taken measures to reduce the fuel consumption, including routes rescheduling.
Biman officials said the national flag carrier consumed 60 per cent of the BPC jet fuel and has right to pay the fuel price on wholesale rate. They said BPC is demanding payment in retail rate.
The BPC claims that it has an outstanding bill of Tk 5.15 billion with the national flag carrier. But the Biman management thinks the dues will not come to more than Tk 2.0 billion after the adjustment of some recent payments.
At one stage of the conflict between the two state-owned corporations, the BPC had issued a 72-hour ultimatum to the Biman that it would not supply fuel if it did not pay the price by cash.
After the expiry of the deadline, the creditor clipped Biman's wings by suspending fuel supply for domestic aircraft last Friday. Its domestic flights could not take off for hours Friday morning.
Responding to a request from the higher authorities, the BPC resumed the supply of fuel and extended its deadline by another couple of days.
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