Govt to import 1.5m tonnes of refined fuel oils in H1 2024
FE REPORT | Thursday, 16 November 2023
The government will import up to 1.565 million tonnes of refined petroleum products in the first half (January-June) of 2024 through a competitive bidding process.
State-run Bangladesh Petroleum Corporation (BPC) has already floated a tender in five different packages based on quantity and types of the products.
The products included 0.005 per cent sulfur gasoil 930,000-1,050,000 tonnes, Jet A-1 fuel 150,000 tonnes, 180 CST high sulfur fuel oil 200,000 -275,000 tonnes, 95 RON gasoline 60,000-75,000 tonnes and 0.50 per cent sulfur marine fuel.
The total quantity of imports will be 1.26 per cent lower than that of the second half (H1) of this year, a senior BPC official told the FE Wednesday, thanks to lower demand for fuel oil in the country during winter.
At the end of H2 2023, when the economy is on a track to rebound despite the Russia-Ukraine war, the imports of the petroleum products combined would stand around 1.585 million tonnes, the BPC official said.
The BPC imports roughly half of the total required refined oil products through tenders and the rest through negotiations with the suppliers.
It imports around 1.50 million tonnes of crude oil annually for its wholly-owned Eastern Refinery Ltd.
Apart from the government purchase, Bangladesh's private sector is expected to import around 1.50 million tonnes of 180 CST HSFO during H1 2024 subject to getting paid their overdue bills from the government entities, said sources.
During H2 2023, the BPC has been importing 0.005 per cent sulfur gasoil at the premium of $9.32 per barrel and $9.23 per barrel to Mean of Platts Arab Gulf (MOPAG) 0.005 per cent sulfur gasoil assessments, cost and freight (CFR), A-1 jet fuel at the premium of $12.16 per barrel and $12.08 per barrel to MOPAG jet A-1 or kerosene assessments, CFR.
It has been importing 180 CST HSFO at the premium of $45.88 per tonne to MOPAG 180 CST HSFO assessments, CFR, 95 RON gasoline at the premium of $11.66 per barrel to MOPAG 95 RON gasoline assessments, CFR and marine fuel 0.5 per cent sulfur at the premium of $78.80 per tonne to MOPAG marine fuel 0.5 per cent sulfur, CFR.