Govt moves to expand fuel storage capacity
Sunday, 7 November 2010
Sheikh Shahariar Zaman
The government is going to increase its fuel storage capacity by about 0.2 million tonnes to cater to the need of growing demand for diesel and furnace oil.
The fuel demand for the current fiscal is projected to be 4.8 million tonnes, up from 3.8 million tonnes in 2008-09 fiscal year. The existing storage capacity is about 0.4 million tonnes.
The demand is set to pick up next fiscal when all 28 rental power plants start operations, said a Bangladesh Petroleum Corporation (BPC) official.
"About 0.16 million tonnes of additional furnace oil and diesel per month will be needed for rental plants and we need to expand the storage capacity," he said.
The country's five major depots are located in Chittagong, Daulatpur, Godaneil/Fatullah, Baghabari and Mongla, he said, adding the corporatiomn would increase the capacity in all major depots.
The government will increase the capacity by 70,000 tonnes in Chittagong, 35,000 tonnes in Godenail, 32,000 in Daulatpur, 21000 tonnes in Baghabari and 41,000 tonnes in Mongla.
It will take at least two years to raise the storage capacity, said another official of the BPC.
"Nearly 70 per cent of fuel will be routed through waterways as it is the cheapest mode," the official said.
"The power plants located in Chittagong and Dhaka will get supply from Eastern Refinery and at Godenail while plants in South and North Bengal from Daulatpur, Baghabari and Mongla," he said.
Out of the 28 plants, 19 will use furnace oil and nine diesel oil.
The country expected to import about 0.32 million tonnes of furnace oil and 2.65 million tonnes of diesel during the current fiscal, the official said.
"Use of furnace oil will be cheaper than that of diesel and currently only four per cent power plants run on furnace oil," he said.
The government has already issued licence to 43
new oil tankers to make smooth transportation of diesel and furnace oil to the 28 power plants.
Jamuna Oil, Padma Oil and Meghna Oil, the three state-owned companies, are responsible for distributing fuel throughout the country.
Meanwhile, the National Board of Revenue has taken steps to waive duty on import of furnace oil to be used in power plants.
At present the NBR charges 12 per cent customs duty and 15 per cent value added tax (VAT) on imports of furnace oil.
The government is going to increase its fuel storage capacity by about 0.2 million tonnes to cater to the need of growing demand for diesel and furnace oil.
The fuel demand for the current fiscal is projected to be 4.8 million tonnes, up from 3.8 million tonnes in 2008-09 fiscal year. The existing storage capacity is about 0.4 million tonnes.
The demand is set to pick up next fiscal when all 28 rental power plants start operations, said a Bangladesh Petroleum Corporation (BPC) official.
"About 0.16 million tonnes of additional furnace oil and diesel per month will be needed for rental plants and we need to expand the storage capacity," he said.
The country's five major depots are located in Chittagong, Daulatpur, Godaneil/Fatullah, Baghabari and Mongla, he said, adding the corporatiomn would increase the capacity in all major depots.
The government will increase the capacity by 70,000 tonnes in Chittagong, 35,000 tonnes in Godenail, 32,000 in Daulatpur, 21000 tonnes in Baghabari and 41,000 tonnes in Mongla.
It will take at least two years to raise the storage capacity, said another official of the BPC.
"Nearly 70 per cent of fuel will be routed through waterways as it is the cheapest mode," the official said.
"The power plants located in Chittagong and Dhaka will get supply from Eastern Refinery and at Godenail while plants in South and North Bengal from Daulatpur, Baghabari and Mongla," he said.
Out of the 28 plants, 19 will use furnace oil and nine diesel oil.
The country expected to import about 0.32 million tonnes of furnace oil and 2.65 million tonnes of diesel during the current fiscal, the official said.
"Use of furnace oil will be cheaper than that of diesel and currently only four per cent power plants run on furnace oil," he said.
The government has already issued licence to 43
new oil tankers to make smooth transportation of diesel and furnace oil to the 28 power plants.
Jamuna Oil, Padma Oil and Meghna Oil, the three state-owned companies, are responsible for distributing fuel throughout the country.
Meanwhile, the National Board of Revenue has taken steps to waive duty on import of furnace oil to be used in power plants.
At present the NBR charges 12 per cent customs duty and 15 per cent value added tax (VAT) on imports of furnace oil.