BPC moves to import diesel from India at high premium

Staff Correspondent | Published: 22:17, Aug 22,2017 | Updated: 23:43, Aug 22,2017

 
 

Energy division has sought approval from the cabinet committee on national purchase to import 22,000 tonnes of diesel from Shiliguri in India at more than double premium over the recent rate in international market.
Officials said Bangladesh Petroleum Corporation will have to spend $5.5 as premium in addition to the price for its proposed import of each barrel of diesel from Numaligarh Refinery Limited, a subsidiary of India’s state-run Bharat Petroleum Corporation Limited, through railway.
They said the recent rate of premium in the international market is below $2.5 per barrel.
BPC mainly imports diesel from Kuwait, United Arab Emirates, Oman, Turkey and a number of East Asian countries including China, Malaysia, Philippines, Vietnam, Indonesia and Brunei under government-to-government deal.
The cabinet committee on national purchase, headed by AMA Muhith, is scheduled to review the energy division proposal on
the import of diesel from India in a meeting tomorrow.
According to energy division proposal, BPC will import a total of 22,000 tonnes of diesel at a cost of $10.25 million equivalent to Tk 83.5 crore as per a deal signed in 2016 with the Numaligarh Refinery Limited.
Last year, BPC imported 2,200 tonnes of diesel from Shiliguri on a trial basis.
The maiden consignment was treated as a ‘goodwill gesture’ between the two neighbouring nations and future diesel trade through pipeline between the two countries.
BPC made a profit of around Tk 7,000 crore in the just concluded fiscal year defying repeated urges from various quarters to reduce the price of petroleum oils in the local market and took up a project of laying 125 kilomtere cross border pipeline for importing one million tonnes of diesel a year from NRL in future.
In April 2015, BPC and NRL signed a memorandum of understanding for trans-border energy trade. 

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