The government has decided to urgently import additional diesel and gasoline from Saudi Arabia to mitigate potential supply disruptions, triggered by the ongoing conflict in Middle East and its subsequent impact on global energy markets.
Under this emergency initiative, the government will procure 100,000 tonnes of diesel and 25,000 tonnes of Gasoline (95 unleaded) outside of existing contracts. The total expenditure for this procurement is estimated at approximately Tk2,046 crore.
According to the Energy and Mineral Resources Division, the volatility in the Middle East has created significant uncertainty regarding global fuel supplies. While officials do not anticipate a shortage in the current month of March, there are growing concerns that a prolonged conflict could complicate the situation.
Data from the division reveals that Letters of Credit (LCs) were opened for 17 ships to supply fuel this March. However, only four ships have arrived in the country so far, with six others currently waiting. The status of the remaining seven LCs remains unconfirmed.
The outlook for April appears equally challenging, with LCs opened for 15 ships. While consent has been received for 13 parcels, confirmation has been secured for only three vessels.
In response to these challenges, the government has reached out to India, China, and Japan for cooperation. Furthermore, after communicating with various entities in the Middle East, the United Kingdom, and Europe, the government selected the Saudi Arabian firm, Petro Gas International Corp, for the emergency procurement.
The Ministry of Finance has stated that ensuring a stable fuel supply is being treated with the highest priority, and necessary funds for these imports will be allocated on a preferential basis.
Beyond imports, officials noted that the government is also strengthening domestic well-drilling activities and exploring alternative sources to ensure an uninterrupted energy supply for the nation.
