Fuel import from UAE awaits decision
Thursday, 28 February 2008

Staff Correspondent

The advisory council's purchase committee will decide the Energy Division's proposal to import 3.9 lakh tonnes of fuel oils from a company in the United Arab Emirates under a proposed state-to-state agreement.

The division is scheduled to place the proposal before the committee, headed by finance adviser Mirza Azizul Islam, to import 3.3 lakh tonnes of diesel, 20,000 tonnes each of kerosene, jet fuel and octane from the Emirates General Petroleum Corporation, popularly known as Emarat, owned by the federal Emirates government.

The advisory council's economic affairs committee recently approved the Energy Division's proposal to sign a state-to-state agreement between the Bangladesh Petroleum Corporation and Emarat.

The contract, once signed, will be the fourth state-to-state agreement to import refined fuels without inviting any tender. As per the Energy Division's proposal, Emarat will charge a premium rate (carrying and other charges such as insurance) of $5.20 a barrel for diesel, $5.60 for kerosene and jet fuel and $7.50 for octane.

Premium is paid in addition to the price of each barrel of fuel oils in the international market; in the case of BPC, it is the Middle Eastern market.

The Emarat's premium rate offers are lower compared to the other state-run companies of Kuwait, India and Egypt from where BPC imports refined petroleum products.

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