On another occasion, at a roundtable on 'Trade with European Union: General Guidelines for Exporters', he advised the readymade garment (RMG) units to go for gas-run power generators instead of diesel-run ones to face power blackouts.

After a meeting with Agrani Bank and Janata Bank, Mahmud remarked to reporters, "I've read in newspaper reports that economists and political leaders have advised the government against raising diesel and kerosene prices. But, they haven't a clue about the petroleum sector. Diesel and kerosene account for 90 per cent of the country's total fuel consumption."

On some economists' and lawmakers' suggestion for raising octane and petrol prices only, he said it would be meaningless, as these two products make up only 10 per cent of the country's total oil consumption. Such a step, while keeping the prices of diesel and kerosene will fail to bail BPC out of its troubles, the energy adviser argued.

Mahmud said the economists [in their pre-budget dialogue with the finance minister] should have clearly told whether the oil prices should be increased or not, adding their advice will not help the government in any way.

MEETING WITH NCBs
Earlier, in the meeting, officials of Agrani and Janata banks made it clear to the energy adviser that, unless BPC pays back its outstanding loans, they would be unable to lend it any more, meeting sources said.

They are suffering from a severe liquidity crisis, the officials of the two nationalised commercial banks (NCBs) told Mahmud. Besides, they said, the inter-bank call-money market is also in such a bad shape that they cannot raise money from that place.

"We used to supply money to the call-money market, but now we have to buy from there. Even that is not possible now, as the call-money market has run dry too, a Janata Bank official explained.

Agrani Bank, which paid about Tk 380 crore to BPC early week, is scheduled to pay it another loan on Tuesday. But, the Agrani Bank officials expressed doubt in the meeting whether they would be able to arrange for the payment on Tuesday, meeting sources said.

BPC requires about $20 crore ($200 million) to import oil to meet the domestic demand until June. If Janata and Agrani banks lend Tk 1400 crore to BPC, the central bank is ready to give the foreign currency in exchange.

BPC also said it is not in a position to make any further payment for importing oil, if domestic oil prices are not increased.

About BPC's foreign-currency need to import oil, Mahmud told reporters that the state petroleum agency will get $125 million from Islamic Development Bank by May 15 and $250 million more from Standard Chartered Bank by July.

The NCBs at present are suffering from a lack of local currency not foreign exchange, an NCB official told The Daily Star, adding, "If BPC does not pay off its dues all other businesses of us will be greatly hampered."

According to sources, BPC owes about Tk 3,500 crore to Janata Bank, Tk 2,200 crore to Agrani Bank, and Tk 6,000 crore to Sonali Bank.

MAHMUD AT ROUNDTABLE
Replying to a query on the ongoing power crisis at the roundtable organised by Bangladesh Foreign Trade Institute in its seminar room yesterday, Mahmud advised the RMG units to shift from diesel-run power generators to gas-run ones to face power outage.

"The cost will also be lower if you produce power by gas-run generators. At the current gas price, per unit power generation cost using gas will be Tk 2.50, while you have to pay Tk 4 per unit power bought from the national grid," he pointed out.

He said the price of natural gas in Bangladesh is the cheapest in the world.