Bangladesh will import 1.8 million tonnes of petroleum fuels worth about $1.21 billion (Tk 101.68 billion) for the period of July to December. The fuels will be purchased from state-owned companies of different countries on the government-to-government (G2G) contract basis.
The Bangladesh Petroleum Corporation (BPC) has already completed negotiations with a number of companies and also received approval from the Cabinet Committee on Public Purchase for the import, according to official sources.
They said a similar quantity of fuels will be imported from international private companies as well through an open tender. But the BPC has so far received approval for only G2G purchase.
An official document of the Energy Division, obtained by UNB, reveals that the BPC invited expression of interest (EoI) offer from 11 state-owned companies of different countries.
Of them, nine companies submitted the EoI and finally negotiation was completed with eight companies in May.
Officials said the BPC during its negotiation mainly settled the quantity of the petroleum products as how much it would import from which company and also their premiums.
As per a decision of the negotiation, the premium of diesel was settled at $3.15 per barrel, octane $6.40 per barrel, Jet A-1 fuel $4.10 per barrel and furnace oil $19.70 per metric tonne.
Now the government will spend $45.036 million (about Tk 3.77 billion) for the premium purpose in the import of the petroleum, said an Energy Division official.
However, the price of petroleum will be fixed on the basis of Platts’ quotations where normally the average price of three days is considered as the value of the product after a purchase order is placed, he mentioned.
Official documents of the Energy Division show that some 1.49 million tonnes of diesel (gas oil) will be imported at an approximate value of $1.010 billion, 45,000 mt of octane (Mogas) at $34.961 million, 170,000 mt of Jet A-1 fuel at $125.024 million and 100,000 mt of furnace oil at $45.307 million.
All the costs were calculated on an approximate basis as the final one will be set while placing the supply order by the BPC.
The documents also show that Petrochina of China will supply 120,000 mt of diesel and 20,000 mt of furnace oil, while UNIPEC of the same country will supply 210,000 mt of diesel and 20,000 mt of Jet A-1 fuel.
The ENOC of the UAE will supply 150,000 mt of diesel and 20,000 mt of furnace oil, the PITC of the Philippines 90,000 mt of diesel and 20,000 mt of octane, and the PTTT of Thailand 60,000 mt of diesel and 15,000 mt of octane.
The BSP Zapin of Indonesia will supply 90,000 mt of diesel, 40,000 mt of furnace oil and 30,000 mt of octane, and the PTLCL of Malaysia will supply 200,000 mt of diesel and 10,000 mt of Jet A-1 fuel. The KPC of Kuwait will supply 570,000 mt of diesel and 140,000 mt of Jet A-1 fuel.

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