Bangladesh will import some 1.8 million tonnes of different petroleum fuels worth about $1.21 billion (about Tk 10,168 crore) for the period of July to December of the current calendar year from different state-owned international companies on government-to-government (G-to-G) contract basis, reports UNB.

According to official sources, state-owned Bangladesh Petroleum Corporation (BPC) has already completed negotiations with a number of companies and also received necessary approval from the Cabinet Committee on Public Purchase to import the bulk petroleum fuels.

They said a similar quantity of petroleum fuels will be imported from international private companies as well through an open tender. But, the BPC has so far received approval for only G-to-G purchase.

An official document of the Energy Division, obtained by UNB, reveals that (BPC) invited expression of interest offer from 11 state-owned companies of different countries.

Of them, nine companies submitted the EoI responding to BPC offer and finally negotiation was completed with eight companies in May last.

Officials said the BPC during its negotiation with the suppliers 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 meeting, the premium of diesel was settled at $3.15 per barrel while 6.40 for octane per barrel, $4.10 for Jet A-1 per barrel and $19.70 for Furnace oil per metric ton.

Now the government will spend $45.036 million (equivalent to Tk 376.73 crore) for the premium purpose in the import of the petroleum, said an Energy Division official.

However, the cost of petroleum will be fixed on the basis of Plutts' quoted price formula where normally the average price of three days is considered as value of the product after a purchase order is placed, he mentioned.

Official documents of the Energy Division show that out of the planned 1.8 million tons of different petroleum products, some 1.49 million tons 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 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 oil, and ENOC of UAE will supply 150,000 mt of diesel and 20,000 mt of furnace oil, PITC of the Philippines will supply 90,000 mt of diesel and 20,000 mt of octane, PTTT of Thailand will supply 60,000 mt of diesel and 15,000 mt of octane.

The BSP Zapin of Indonesia will supply 90,000 mt of diesel and 40,000 mt of furnace oil and 30,000 mt of octane, while PTLCL of Malaysia will supply 200,000 mt of diesel and 10,000 mt of Jet A-1 and KPC of Kuwait will supply 570,000 mt of diesel and 140,000 mt of Jet A-1 oil.