Fuel crisis: What is the govt planning to buy?

The government has moved to secure large fuel imports through direct procurement as it seeks to maintain supply during ongoing global disruptions.

The proposals are set to be placed before the Cabinet Committee on Government Purchase.

The proposed purchases

According to the agenda for the Cabinet Committee on Government Purchase meeting, the government plans to import 10 lakh tonnes of EN 590 (10 ppm) grade diesel through direct procurement from UAE-based DBS Trading House FZCO.

The same company will also supply 100,000 tonnes of Gasoline 95 Unleaded (petrol).

The committee will also consider a proposal to import 100,000 tonnes of diesel with a sulphur content of 50 ppm through direct procurement from Oman-based Maxwell International SPC.

In addition, a proposal will be placed to import 500,000 tonnes of high-speed diesel (HSD), also known as automotive gas oil (AGO), from Kazakhstan’s Kazakh Gas Processing Plant LLP through the same direct procurement method.

Currently, Saudi Arabia, UAE, Qatar, Kuwait, and Oman are the major exporters of petroleum products to Bangladesh, primarily through government-to-government (G2G) deals.

Since most of Bangladesh’s fuel imports come from the region, the government has been forced to secure supplies from alternative sources at comparatively higher prices, Finance Minister Amir Khosru said.