Govt to import 4.2m tonnes petroleum in 2020

The government will import about 4.2 million tonnes of petroleum from different countries in 2020 to meet the domestic requirements.

The Cabinet Committee on Economic Affairs at a meeting approved a proposal in principle in this regard.

Officials said the government is following a certain practice from the last few years for the import of petroleum as part of its energy import strategy.

Under the strategy, Bangladesh Petroleum Corporation (BPC) imports 50 per cent of the total required fuel from state-owned companies of different countries through a negotiated premium at an international rate while remaining 50 per cent is imported through open tender from open sources. About the strategy, Finance Minister AHM Mustafa Kamal earlier said the government follows such a strategy to secure its fuel import. "If the entire import is made through open tenders, there always remains a risk. In case of any international crisis, the supplier might decline to supply fuel which will push the country's fuel import towards uncertainty," he said adding that they are now following the strategy for this.

As per the proposal, some 3.5 million tonnes will be gas oil (diesel) while 460,000 tonnes Jet-A-1, 120,000 tonnes octane (mogas) and 120,000 tonnes furnace oil.