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Govt to import 1.43mn mts petroleum for Jul-Dec

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Staff Reporter

The government is going to import some 1.436 million metric tonnes of refined gas oil (diesel) and furnace oil from eight international petroleum companies for the second half period (July-Dec ) of the current year against the country's total demand for 2.270 million mts during the period.

Of the planned import, the gas oil is 1.016 million mts while the furnace oil is 420,000 mts.

According to sources at the state-owned Bangladesh Petroleum Corporation (BPC), among the eight fuel companies, 450,000 mts gas oil will be imported from KPC of Kuwait.

The Petco of Malaysia will supply total 320,000 mts of refined petroleum of which 200,000 mts are gas oil and the rest 120,000 mts furnace oil.

The BPC's some 116,000 mts of refined petroleum will come from PNOC of the Philippines of which 96,000 mts is gas oil and 20,000 mts are furnace oil.

Some 190,000 mts refined petroleum will be coming from ENOC of the UAE, of which 90,000 mts are gas oil and the rest 100,000 mts furnace oil.

The Petrochina of China will supply a total of 130,000 mts of petroleum fuel of which 90,000 mts are gas oil and 40,000 mts furnace oil.

Vietnam's Petrolimex will provide a total of 110,000 mts of refined petroleum of which gas oil is 30,000 mts and furnace oil 80,000 mts.

UNIPEC of China will supply a total of 80,000 mts of refined petroleum of which gas oil is 60,000 mts and furnace oil 80,000 mts. Besides, some 40,000 mts of furnace oil will come from Bhumi Siak of Indonesia.

Some 40,000 mt of furnace oil will come from Bhumi Siak of Indonesia during the send six-month period of the current year (2014).

For the import, the premium was proposed to be fixed at US$ 4.80 per barrel of Diesel and US$ 34 per mt of Furnace oil, down from $35 per mt for first half (Jan-June).

The BPC reviews every six months its rate of premium prior to its petroleum import. The premium includes transportation, insurance and other costs excluding the fuel price.

The fuel price is normally fixed on the basis of a three days’ average price on international market at the time when it places order to the petroleum supply company.

It was observed the BPC's import of gas oil and furnace oil takes a declining trend in the second half of the current calendar year.

During the last six-month period from January to June, the country's petroleum import (gas oil (diesel) and furnace oil) was 2.030 million in which gas oil was 1.51 million mt while furnace oil was 520,000 mt while the two items of petroleum import were proposed to be 1.436 million mt, less by 594,000 tonnes from the first half import.

BPC director (operation & planning) Mosleh Uddin told that there are two main reasons behind the decline in import of two main items of petroleum fuel.

He said the demand for gas oil (diesel) normally takes a lower trend in the second half of the year as there is no big requirement for irrigation pump operation in this period. Secondly, the overall improvement in generation has a big impact on diesel consumption by the irrigation pumps.

"Now a huge number of pumps operate with electricity which earlier used to use diesel," said the BPC director.

He further said the BPC takes a conservative outlook towards the import of petroleum fuel in the second half of the year as there is no pressure for meeting the irrigation demand.

Official sources said the BPC has already sent its import proposal to the Cabinet Purchase Committee through the Energy Ministry for approval.