CHITTAGONG, July 20: Bangladesh’s lone state-owned oil distribution company incurred a loss of around $550m last fiscal year due to spiralling world oil prices, an official said on Thursday.

The oil bill of the state-run Bangladesh Petroleum Corporation soared 33pc to $1.95bn in the fiscal year ended June 30, 2006, BPC’s marketing director Mohammad Ishaq told AFP.

Despite two rises in the domestic prices of petroleum products in the year, the BPC was left to absorb the higher costs of oil imports, resulting in a loss of around $550m, Ishaq said.

“A huge increase in oil prices in the world market and comparative low prices in the domestic market were responsible for the loss to the BPC,” he said.