Bangladesh will import around 1.42 million tons of petroleum from eight state-owned companies of different countries under the government-to-government (G2G) arrangements in the first half of the current year.
According to sources at the Energy and Mineral Resources Division under the Power, Energy and Mineral Resources Ministry, the government will require to spend about $806.769 million, equivalent to Tk6,772.87 crore, to procure this bulk refined petroleum from January to June this year.
They said the Energy and Mineral Resources Division and state-owned Bangladesh Petroleum Corporation (BPC) will import the bulk petroleum.
Of the total fuel, the BPC will buy 1.19 million tons of oil (diesel) while 100,000 tons of Jet A-1,30,000 tons of petrol and 100,000 tons of furnace oil.
The Cabinet Committee on Public Purchase last week approved a proposal of the division allowing the corporation to import the bulk fuel.
The committee also approved the premium of the fuel import proposals which are $2.95 per barrel for diesel, $3.95 per barrel for Jet A-1, $5.50 per barrel for petrol and $29.75 per tonne for furnace oil.
As per the proposal, the state-owned corporation will import 90,000 tons of diesel, 40,000 tons of furnace oil and 15,000 tons of petrol from BSP Zapin of Indonesia while 1.10 lakh tons of diesel, 10,000 tons of Jet A-1 and 20,000 tons of furnace oil from PTLCL of Malaysia, some 90,000 tons of diesel and 20,000 tons of furnace oil from ENOC of the United Arab Emirates (UAE), and some 60,000 tons of diesel and 20,000 tons of furnace oil from Thailand's state-owned PTTT.
It will buy only diesel from two state-owned Chinese companies. Of this, some 90,000 tons of diesel will be coming from China's Petrochina and 150,000 tons of diesel from Unipec.
Some 51,000 tons of diesel and 90,000 tons of Jet A-1 will be imported from Kuwait's state-owned KPC and some 90,000 tons of diesel and 15,000 tons of petrol from Philippines' state-owned PITC.
Officials said the government is following a certain practice from the last few years for the import of petroleum as part of its energy import strategy.
Under the strategy, the BPC imports 50% of the total required fuel from state-owned companies of different countries through a negotiated premium at an international rate while remaining 50% is imported through open tender from open sources.
About the strategy, Finance Minister AHM Mustafa Kamal said the government follows such a strategy to secure its fuel import. "If the entire import is made through open tenders, there always remains a risk. In case of any international crisis, the supplier might decline to supply fuel which will push the country's fuel import towards uncertainty," he said adding that they are now following the strategy for this.