Govt to import 77,000 mt of diesel from India through railway wagons

FT ONLINE

The government is going to import some 77,000 metric tonnes (578,420 barrels) of diesel from India through railway wagons to meet the domestic demand of petroleum for a period from May to December in 2018.

According to official sources at the Energy Division, the state-owned Bangladesh Petroleum Corporation (BPC) has already completed negotiations with Indian authorities to import the bulk amount of petroleum.

Indian state-owned Numaligor Refinery Limited (NRL) will supply the petroleum from its Shiliguri marketing terminal through 35 wagons. Each wagon will carry some 22,000 metric tonnes of diesel, the BPC officials said.

The wagons will reach Parbotipur oil depot of Bangladesh from Shiliguri terminal.

Bangladesh has to spend about Tk 410.56 crore to import the bulk amount of diesel, an Energy Division document reveals.

The price of each barrel of diesel has been fixed at $79.690 on the basis of standard operative procedure (SOP).

The price was estimated as per Plutts` reference price of diesel on March 26, 2018 of the international market. The dollar rate was estimated at Tk 83.50.

In this case, the government will spend $3.159 million (equivalent to Tk 26.38 crore) for premium of the 77,000 mt of diesel while $48.934 (equivalent to Tk 382.23 crore) for price of petroleum and Tk 1.95 crore for insurance to import of the diesel.

Officials said the diesel is being imported from India as part of the government`s 15-year-long term deal under which a cross-border pipeline is being built from Indian Numaligor refinery in Indian state of Assam to Parbotipur oil depot, located in the north-western bordering of Dinajpur of Bangladesh.

Of the total 130-km cross-border pipeline, named as ‘Indo-Bangla Friendship Pipeline’, some 125 km are located on Bangladesh side while only 5 km on Indian side.