Govt buys 3 lakh tonnes of diesel to meet demand

Amid rising tensions in the Middle East and uncertainty over long-term energy deals, the government has decided to import 3 lakh tonnes of diesel under the Direct Purchase Method (DPM) to meet the demand for April.

The Department of Energy said that the ongoing conflict surrounding the US, Israel and Iran may affect fuel supply. For this reason, Bangladesh is moving towards direct purchase on an urgent basis to reduce its dependence on regular suppliers. For this purpose, the necessary approval has been given to Bangladesh Petroleum Corporation (BPC).

As per the plan, Dubai-based Petrogas International Corporation will supply 1 lakh tonnes and US-based A&A Oil and Gas will provide 2 lakh tonnes of diesel. The first consignment is expected to reach the country by March 27.

Energy Secretary Mohammad Saiful Islam said that the main goal now is to ensure uninterrupted fuel supply to the transport, agriculture and power sectors in April. In the current situation, the direct procurement method is playing an effective role in making quick decisions.

Regarding the price, he said, A&A Oil and Gas has offered to supply diesel at $75 per barrel, which is lower than the international market. However, due to the war situation, some risks and uncertainties remain in the supply process.

Joint Secretary (Operation-1) of the Energy Department AKM Fazlul Haque said, direct procurement is now the most effective way to keep supply stable. The goal is to ensure safe and continuous supply without additional costs.

Meanwhile, about 20 percent of global oil and gas supply is being affected due to the disruption of shipping in the Strait of Hormuz. In this situation, Bangladesh is strengthening alternative supply systems to deal with potential risks.