BPC to sell MTT, SBPS to stop condensate misuse, theft

MTT is known as a ‘lighter kerosene’. According to recent circular, BPC fixed the prices of MTT at Tk 67.32 per litre while SBPS at Tk 86.86

Sensing the misuse and theft of condensate by private refineries, the state-owned Bangladesh Petroleum Corporation (BPC) is now going to sell finished petroleum products like the MTT and SBPS through its own distribution subsidiaries.
 In a recent circular issued on February 9, the BPC fixed the prices of MTT at Tk. 67.32 per litre and SBPS at Tk. 86.86 per litre.
The MTT (Mineral Turpentine) is known as a ‘lighter kerosene’, specially treated for being used as a paint thinner and solvent. It is also known as turpentine oil. The SBPS is essentially a sweetened light gasoline used as an industrial solvent and dry-cleaning agent.
Both these petroleum products are produced from condensate, a by-product of the gas fields across the country. In underground formations, the condensate can exist separately from the crude oil or can be dissolved in it.
BPC director (operation and planning) Syed Mozammel Haque told The Independent that the BPC had taken the initiative of selling the MTT and SBPS through its subsidiaries like the Padma Oil Companies, Jamuna Oil Companies and Meghna Petroleum Limited.
“We have done this to keep track of the condensate that we supply to private refineries. Previously, these  refineries used to tell us that they were producing the MTT and SBSP from our condensate, but in reality they used to produce fuel oil and sell those to filling stations, agents and packed point dealers.”
As per the law, only the BPC has the mandate to sell fuel oil to filling stations, agents and packed point dealers. The BPC does the job through its three oil distribution and marketing companies—Padma, Meghna and Jamuna oil companies. Private-sector importers and refiners are prohibited to sell the products in the open market.
 In November last year, the BPC had asked the National Board of Revenue (NBR) for data regarding the private importers of fuel oil. The BPC sought the data to determine the actual demand of fuel oils in the country, as it found it difficult to fulfil its task without accurate data concerning petroleum products imported by private-sector businesses.
NBR officials provided the BPC with the data after getting import statistics from the country’s two river customs houses in Chittagong and Mongla. A BPC analysis of the data revealed huge discrepancies between the NBR data and the condensate usage figures submitted by the private refineries.
Mozammel Haque said that when asked about the discrepancies in condensate usage, many of the private refineries told them that they produced the MTT and SBSP from the condensate. “Petroleum products like the MTT and SBPS are produced on the basis of market demand. As a result, it is hard to keep track of the sales records. 
There were allegations against the private refineries that they were producing adulterated fuel oil from our condensate t and selling them to filling stations,” he added.
Haque said that the BPC has decided to sell the MTT and SBPS itself. “This way, we will be able to keep track of the condensate and stop its misuse by the private refineries.”

BPC to sell MTT, SBPS to stop condensate misuse, theft

MTT is known as a lighter kerosene. According to recent circular, BPC fixed the prices of MTT at Tk 67.32 per litre while SBPS at Tk 86.86

Sensing the misuse and theft of condensate by private refineries, the state-owned Bangladesh Petroleum Corporation (BPC) is now going to sell finished petroleum products like the MTT and SBPS through its own distribution subsidiaries. In a recent circular issued on February 9, the BPC fixed the prices of MTT at Tk. 67.32 per litre and SBPS at Tk. 86.86 per litre. The MTT (Mineral Turpentine) is known as a lighter kerosene, specially treated for being used as a paint thinner and solvent. It is also known as turpentine oil. The SBPS is essentially a sweetened light gasoline used as an industrial solvent and dry-cleaning agent. Both these petroleum products are produced from condensate, a by-product of the gas fields across the country. In underground formations, the condensate can exist separately from the crude oil or can be dissolved in it. BPC director (operation and planning) Syed Mozammel Haque told The Independent that the BPC had taken the initiative of selling the MTT and SBPS through its subsidiaries like the Padma Oil Companies, Jamuna Oil Companies and Meghna Petroleum Limited. We have done this to keep track of the condensate that we supply to private refineries. Previously, these refineries used to tell us that they were producing the MTT and SBSP from our condensate, but in reality they used to produce fuel oil and sell those to filling stations, agents and packed point dealers. As per the law, only the BPC has the mandate to sell fuel oil to filling stations, agents and packed point dealers. The BPC does the job through its three oil distribution and marketing companiesPadma, Meghna and Jamuna oil companies. Private-sector importers and refiners are prohibited to sell the products in the open market. In November last year, the BPC had asked the National Board of Revenue (NBR) for data regarding the private importers of fuel oil. The BPC sought the data to determine the actual demand of fuel oils in the country, as it found it difficult to fulfil its task without accurate data concerning petroleum products imported by private-sector businesses. NBR officials provided the BPC with the data after getting import statistics from the countrys two rivercustoms houses in Chittagong and Mongla. A BPC analysis of the data revealed huge discrepancies between the NBR data and the condensate usage figures submitted by the private refineries. Mozammel Haque said that when asked about the discrepancies in condensate usage, many of the private refineries told them that they produced the MTT and SBSP from the condensate. Petroleum products like the MTT and SBPS are produced on the basis of market demand. As a result, it is hard to keep track of the sales records. There were allegations against the private refineries that they were producing adulterated fuel oil from our condensate t and selling them to filling stations, he added. Haque said that the BPC has decided to sell the MTT and SBPS itself. This way, we will be able to keep track of the condensate and stop its misuse by the private refineries.