Import of refined fuel oil to surge 32pc next year

The government yesterday approved the import of 58.5 lakh tonnes of refined fuel oil for 2022 to meet the country's demand, which is about 32 per cent more than what was potentially to be imported in the current year.

The Cabinet Committee on Economic Affairs at a meeting approved the proposal of the Energy and Mineral Resources Division to meet the country's demand for fuel oil in the upcoming year. Finance Minister AHM Mustafa Kamal chaired the meeting.

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The government expects the demand for fuel oil to increase in 2022 as the coronavirus vaccination programme continues in the country, allowing continuation of trade, industrial and tourism activities.

About 50 per cent of the refined fuel oil meant for import will be procured on a government-to-government basis and the rest from the spot market.

The meeting approved importing 44.80 lakh tonnes of diesel, 4.80 lakh tonnes of aviation fuel, 4.20 lakh tonnes of octane, 3.40 lakh tonnes of furnace oil and 1.50 lakh tonnes of marine fuel oil.

These fuels will be imported from eight listed companies of Kuwait, China, Indonesia, Malaysia, United Arab Emirates, Thailand and India.

According to Bangladesh Petroleum Corporation (BPC), 2020 witnessed the lowest amount of refined fuel oil being imported in the last six years.

Demand for fuel oil has been negatively affected this year due to the long-term shutdown of traffic movement and industrial activities across the country.

The BPC data said 39.96 lakh tonnes of refined fuel oil was imported in 2020 and 42.27 lakh tonnes in 2019.

About 25 lakh million tonnes of refined fuel oil have been imported from January to July in 2021. The BPC plans to import a total of 44 lakh tonnes of refined fuel oil this year.

The meeting approved another proposal of the same entity to buy 16 lakh tonnes of crude oil from Saudia ARAMCO of Saudi Arabia and Abu Dhabi National Oil Company of the United Arab Emirates in 2022.