Diesel import from another Indian co under study
Tuesday, 31 July 2007
Jasim Uddin Haroon
The government is mulling over import of diesel from another Indian state-owned oil company through river route mainly to meet the fuel requirement for the country's southwestern region.
This time, Bangladesh Petroleum Corporation (BPC) is likely to sign deal with Indian Oil Company (IOC) to purchase the fuel.
Earlier, the government signed agreement to procure 120,000 tonnes of high speed diesel from Bharat Petroleum Corporation Limited (BPCL) and the first consignment might arrive at Baghabari in Serajganj August 10.
However, sources at the BPC told the FE that it was planning to purchase at least 10,000 tonnes of diesel a month from the IOC for meeting the requirement of greater Khulna division.
The BPC has three depots at Doulatpur in Khulna and there is a demand for around 1300 tonnes of diesel a day.
Three depots have capacity to store around 15000 tonnes, BPC sources said.
"We are now negotiating with the IOC on the premium issue. If we can settle this issue shortly, we hope we will be able to sign a deal with the new Indian company within the next few months," said Syed Mozamel Hoque, director (operation) of the BPC.
The BPC sources said the IOC wants to fix premium at US$ 6.0 per barrel of diesel.
They said the BPC wants to reduce the premium as the other Indian oil company -- BPCL -- is supplying fuel at a premium of $ 5.49 each barrel.
The BPC is importing fuel from Kuwait Petroleum Corporation (KPC) at the premium rate of US$ 5.40 per barrel.
The BPC is importing the fuel from the Indian companies to send fuel to the country's north and western zones through river route, which will help save time and minimise losses of fuel in transit.
A high-level team of the BPC visited the IOC's plant in India on July 11-18 last. A team from the IOC also visited Dhaka in March this year for talks on the fuel trade.
BPC sources said the diesel will arrive from Holdia port to Doulatpur of Khulna. A consignment will take only 48 hours to reach Doulatpur of Khulna from the Indian port.
BPC sources said a deal with the IOC will ensure smooth supply of fuel to the region.
The fuel import will be felicitated under the Inland Water Inter-country Trade and Transit Protocol signed between the two countries in late 1970s.
The government is mulling over import of diesel from another Indian state-owned oil company through river route mainly to meet the fuel requirement for the country's southwestern region.
This time, Bangladesh Petroleum Corporation (BPC) is likely to sign deal with Indian Oil Company (IOC) to purchase the fuel.
Earlier, the government signed agreement to procure 120,000 tonnes of high speed diesel from Bharat Petroleum Corporation Limited (BPCL) and the first consignment might arrive at Baghabari in Serajganj August 10.
However, sources at the BPC told the FE that it was planning to purchase at least 10,000 tonnes of diesel a month from the IOC for meeting the requirement of greater Khulna division.
The BPC has three depots at Doulatpur in Khulna and there is a demand for around 1300 tonnes of diesel a day.
Three depots have capacity to store around 15000 tonnes, BPC sources said.
"We are now negotiating with the IOC on the premium issue. If we can settle this issue shortly, we hope we will be able to sign a deal with the new Indian company within the next few months," said Syed Mozamel Hoque, director (operation) of the BPC.
The BPC sources said the IOC wants to fix premium at US$ 6.0 per barrel of diesel.
They said the BPC wants to reduce the premium as the other Indian oil company -- BPCL -- is supplying fuel at a premium of $ 5.49 each barrel.
The BPC is importing fuel from Kuwait Petroleum Corporation (KPC) at the premium rate of US$ 5.40 per barrel.
The BPC is importing the fuel from the Indian companies to send fuel to the country's north and western zones through river route, which will help save time and minimise losses of fuel in transit.
A high-level team of the BPC visited the IOC's plant in India on July 11-18 last. A team from the IOC also visited Dhaka in March this year for talks on the fuel trade.
BPC sources said the diesel will arrive from Holdia port to Doulatpur of Khulna. A consignment will take only 48 hours to reach Doulatpur of Khulna from the Indian port.
BPC sources said a deal with the IOC will ensure smooth supply of fuel to the region.
The fuel import will be felicitated under the Inland Water Inter-country Trade and Transit Protocol signed between the two countries in late 1970s.