Kuwait stops fuel oil supply
Monday, 15 December 2008
Our Correspondent
CHITTAGONG, Dec 14: Kuwait Petroleum Corporation (KPC) has stopped supplying fuel oil to Bangladesh as they are unwilling to accept Letter of Credit (LC) from any Bangladeshi bank.
KPC has halted the supply of 1,20,000 metric tonnes of diesel, jet fuel, kerosene and octane worth around Tk 4.50 billion, which were supposed to arrive under different consignments at Chittagong port.
Bangladesh Petroleum Corporation (BPC) is trying to procure fuel from alternative sources like Malaysia, UAE and Maldives.
According to BPC sources, KPC advised BPC to open LCs through multinational banks like Standard Chartered Bank, Hong Kong Shanghai Banking Corporation (HSBC) and Citibank NA. But since fuel oil is purchased under government finance, LCs were opened at Sonali, Agrani and Janata Banks.
KPC informed BPC that if they were not provided with the LCs through the multinational banks, the allotted fuel oil would be sold elsewhere.
But as it was not possible on the part of BPC to open LC within such a short time, KPC finally informed their unwillingness to supply fuel oil through a letter last week.
However, BPC is not apprehending any crisis of fuel oil having more than 0.3 million tonnes of stored diesel and other fuel.
CHITTAGONG, Dec 14: Kuwait Petroleum Corporation (KPC) has stopped supplying fuel oil to Bangladesh as they are unwilling to accept Letter of Credit (LC) from any Bangladeshi bank.
KPC has halted the supply of 1,20,000 metric tonnes of diesel, jet fuel, kerosene and octane worth around Tk 4.50 billion, which were supposed to arrive under different consignments at Chittagong port.
Bangladesh Petroleum Corporation (BPC) is trying to procure fuel from alternative sources like Malaysia, UAE and Maldives.
According to BPC sources, KPC advised BPC to open LCs through multinational banks like Standard Chartered Bank, Hong Kong Shanghai Banking Corporation (HSBC) and Citibank NA. But since fuel oil is purchased under government finance, LCs were opened at Sonali, Agrani and Janata Banks.
KPC informed BPC that if they were not provided with the LCs through the multinational banks, the allotted fuel oil would be sold elsewhere.
But as it was not possible on the part of BPC to open LC within such a short time, KPC finally informed their unwillingness to supply fuel oil through a letter last week.
However, BPC is not apprehending any crisis of fuel oil having more than 0.3 million tonnes of stored diesel and other fuel.