Finance minister to hold emergency meeting on fuel imports

An emergency meeting of the Cabinet Committee on Economic Affairs and the Cabinet Committee on Government Purchase will be held on Saturday afternoon to approve the import of 1.7 million tonnes of fuel oil.

Finance and Planning Minister Amir Khasru Mahmud Chowdhury will chair both meetings, which will be held virtually. If approved, the proposal may receive final clearance in the subsequent government purchase committee meeting on the same day.

The meeting has been called as a precautionary measure due to instability in the global energy market caused by the ongoing conflict in the Middle East. Proposals may be placed to directly import 1 million tonnes of diesel and 100,000 tonnes of octane from UAE-based DBS Trading House.

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In addition, proposals may include the import of 100,000 tonnes of diesel from Maxwell International SPC of the UAE and 500,000 tonnes of diesel from Kazakhstan’s Kazakh Gas Processing Plant LLP.

Earlier on 31 March, the purchase committee approved a proposal to import 260,000 tonnes of fuel oil. The country’s diesel demand for April is estimated at around 350,000 tonnes. Of the 1.7 million tonnes proposed in the latest plan, about 1.6 million tonnes are diesel. If approved, the fuel shipments are expected to arrive in Bangladesh during May and June.

Following approval from the purchase committee, performance guarantees will be obtained from the companies. Bangladesh Petroleum Corporation (BPC) will then issue work orders by opening letters of credit.

Joint Secretary of the Energy and Mineral Resources Division, Monir Hossain Chowdhury, said the emergency meeting was convened to strengthen the country’s energy security.

He added that there is currently no shortage of octane, with sufficient stock to meet demand for at least three months. There is also no shortage of diesel supply for April.