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|**Country E R**|**Pricing policy and strategy**|**Fuel supply conditions**|
|---|---|---|
||**Consequences of subsidies**: BPC has taken out loans from state-<br>owned commercial banks, received budgetary transfers to cover its<br>operating losses, and relied on banks to provide much of the foreign<br>exchange needed, because delayed budgetary transfers have caused<br>BPC to regularly lack funds to purchase foreign exchange for oil<br>imports. Banks are reluctant to issue letters of credit. An official<br>figure reportedly shows that BPC’s bank liabilities stood at Tk 192<br>billion ($2.3 billion) in 2012 and Tk 172 billion ($2.3 billion) in<br>2011. BPC in 2011 negotiated with Malaysia’s national oil company<br>Petronas and the Philippines National Oil Company to extend<br>US$550 million and US$250 million, respectively, on deferred<br>payment for fuel oil for up to one year with minimal interest.<br>Government established a technical committee in January 2012 to<br>monitor closely the finances of BPC to ensure regular budget<br>transfers to cover subsidy-related losses and to enable it to buy<br>foreign exchange from domestic banks to pay for petroleum imports.<br>In 2012, government decided to reduce fuel imports by BPC to save<br>foreign exchange, Bangladesh Power Development Board decided to<br>lower electricity purchases from oil-based power plants to cut costs,<br>22 of the 29 oil-fired power plants were shut down in early Mar<br>2012, and Dhaka Electric Supply Company served notice to mills and<br>factories to keep their units shut from 6 P.M. to 6 A.M.<br>**Compensation**: Governmenthas been providing cash subsidies to<br>farmers for diesel for irrigation.|<br> <br> <br>increasing demand for petroleum products.<br>**Smuggling**: Smuggling of diesel to India<br>and Myanmar has been reported.|
||**Information**: BPC posts current fuel prices on its Web site.||
|Bolivia<br>√|<br> <sup>**Pricing policy**: Fuel prices are uniform, controlled by government,</sup><br>and frozen for years at a time. Since Jan 2009, vehicles with foreign<br>licence plates have been charged international prices, set every<br>quarter. On the domestic market, the price of oil is US$27/bbl.<br>Concerned about declining oil production, government issued<br>Supreme Decree 1202 in Mar 2012, providing a tax credit of<br>US$30/bbl to foreign companies in addition to US$10 in cash they<br>were receiving. As late as Dec 24, 2010, government was reportedly<br>denying any intention to reform subsidies. However, just two days<br>later, as part of a broader subsidy reform, government increased<br>diesel price by 83% and gasoline by 73%, the largest since 1991<br>when prices were raised by 35%. Government was also to raise the<br>fee paid to oil producers from US$27 to US$59 a barrel.<br>**Protests**: The increases in Dec 2010 were completely reversed 5<br>days later following widespread protests, as was food subsidy<br>reduction.|**Supply**: Bolivia has two small refineries.<br>**Smuggling**: There is significant smuggling<br>of subsidized fuels to neighboring<br>countries.|
||**Consequences of subsidies**: Fuel subsidies have amounted to about<br>||
||3% of GDP in recent years.||
||Year<br>2005<br>2006<br>2007<br>2008<br>2009<br>2010<br>2011||
||US$ billion<br>108<br>140<br>288<br>487<br>462<br>666<br>706||
||<br> <br> <br> <br> <br> <br> <br> <br>% of GDP<br>1.1<br>1.2<br>2.2<br>2.9<br>2.7<br>3.4<br>2.9||
||Government newspaper_Cambio_||
||.<br>**Information**: Government posts current fuel prices on its Web site.<br>In Feb 2011, government created a new ministry of||
||<br>communications, 8 years after such a ministry had been abolished.||
|Bil<br>|<br>**Pii li**Pi dld b l i J 2002 b i|**Sl**Pb 98% f h|
|raz<br>√|<br>**rcng pocy**: rces were ereguate y aw n an , ut n<br>practice the national oil company, Petrobras, has frozen ex-refinery<br>prices for years on end, with mounting losses. The national average<br>producer price of pure gasoline were kept within a narrow band of<br>R$1.51−1.55/liter between Sep 2005 and Jan 2013, that of diesel<br>within R$1.33−1.37 between Aug 2009 and Jul 2012, and that of<br>LPG sold in 13-kgcylinders has been kept within R$1.03−1.05per|**uppy**: etroras owns o te<br>country’s refining capacity. In May 2011,<br>government announced that it was<br>launching an investigation into Petrobras’<br>fuel distribution and retail division for<br>alleged abuse of its dominant market<br>position in Brasilia. Puregasoline is not|