The viability of petroleum operations in the country and Bangladesh Petroleum Corporation's financial performance deteriorated noticeably in recent years because of continuous increase of oil prices in the international market that have not been matched by adequate price or tax adjustments. Besides, operational inefficiencies in BPC companies have complicated the situation. In early 90s, BPC used to earn sizable amount of profits largely due to the state monopoly in petroleum refining, external trade and marketing and associated protection. But its profits came down in the second half of the nineties because of a significant rise in indirect taxes on petroleum products; rise in world prices of crude oil and POL products, together with exchange rate changes. Petroleum prices were hiked on several occasions in recent years but the price of kerosene was not raised accordingly, considering the sufferings of the poor. Petroleum companies continue to contribute to the losses of state-owned enterprises and remain a major part of the total loss. The government must look into this matter carefully and take necessary measures to make the petroleum operations viable, at the same time protect the interest of majority of the population.