Cabinet approves fuel oil import from Philippines

Last updated: May 12, 2009

Dhaka, Bangladesh (BBN)- Bangladesh will import fuel from a new source, Philippines, as the cabinet committee on government purchase approved the deal on Tuesday, officials said.

The state-owned Bangladesh Petroleum Corporation (BPC) will import 1,80,000 tons of fuel - 1,50,000 tons of diesel and 30,000 tons of jet-fuel - from the Philippines National Oil Company (PNOC) from July - December 2009.

The meeting of the cabinet committee on government purchase, chaired by its Chairman and Finance Minister AMA Muhith, approved the deal between the BPC and the PNOC.

For importing fuel from the Philippines, the premium rate of per barrel of diesel is US$ 5.15 and $6.60 for jet-fuel, in addition to the regular oil prices in the international market, officials confirmed.

Bangladesh currently imports around 3.65 million tons of crude and refined products annually to meet its domestic need.

The country consumes around 2.3 million tons of diesel, 5,00,000 tons of kerosene, 1,00,000 tons of gasoline, and 2,50,000 tons of jet-fuel per year.

BBN/SS/ANS/AS-13May09-12:56 am (BST)

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