Govt seeks seamless fuel import from China, ramps up diesel imports from India

Bangladesh has sought assistance from China to ensure a seamless fuel supply from Chinese suppliers under a settled long-term agreement following reports of restrictions on fuel exports from Chinese refineries.

The request was made during a meeting held at the power, energy and mineral resources ministry yesterday (10 March), attended by the minister, state minister, two secretaries, and Chinese Ambassador Yao Wen.

Chinese state-owned company Unipec exports a substantial amount of diesel to Bangladesh. The Bangladesh Petroleum Corporation (BPC) is supposed to receive at least three diesel cargoes with 30,000 tonnes each between 13 and 29 March.

Following the restrictions, BPC said there is uncertainty about those cargoes, as well as concerns raised by other suppliers about the smooth supply of fuel, citing the Middle East war.

Energy ministry officials said after Bangladesh requested an uninterrupted supply, the ambassador advised the minister to share the fuel import plan earlier determined between the BPC and Chinese suppliers.

When asked about the meeting with the Chinese envoy, ministry officials declined to comment on record.

Energy Division sources said the ambassador assured that the fuel supply issue would be discussed with the Chinese government once Bangladesh submits details on the fuel supply window and quantity expected from Chinese suppliers.

Speaking to journalists at the ministry later, the Chinese ambassador said there are proposals from both sides to expand energy cooperation.

"We discussed better ways forward and modalities on how to expand cooperation in the power and energy sector," he said.

Wen added that China had raised the issue of expanding investment in Bangladesh's power and energy sector, particularly in solar energy cooperation.

When asked whether Bangladesh raised the issue of the ongoing energy crisis, the ambassador replied, "Yes. We discussed this issue, but I am not in a position to comment on it now."

Energy Division sources told TBS that Minister Iqbal Hasan Mahmud Tuku raised the issue of supply uncertainty from Chinese companies.

5,000 tonnes of diesel imported from India

Meanwhile, amid panic buying and growing concern in the fuel market, Bangladesh imported 5,000 tonnes of diesel from India yesterday, just a day after BPC imported more than 27,000 tonnes of diesel.

BPC Chairman Muhammad Rezanur Rahman confirmed the import of diesel from India.

Energy Division officials said BPC will receive another 5,000 tonnes of diesel from India today through the 131-kilometre India-Bangladesh Friendship Pipeline, which runs from the Siliguri Marketing Terminal in India to the Parbatipur depot in Dinajpur, enabling direct diesel transportation between the two countries.

The diesel import is taking place under an earlier agreement between BPC and Numaligarh Refinery Limited, an Indian state-owned refinery, for the January–June supply window this year.

Earlier, Bangladesh requested India to ramp up diesel exports under the existing agreement.

Under the deal between BPC and Numaligarh Refinery Limited, the refinery is scheduled to supply 1.8 lakh tonnes of diesel annually through the cross-border pipeline.

Of this volume, around 1.2 lakh tonnes have already been confirmed, while Bangladesh retains the option to import an additional 60,000 tonnes depending on demand.

The pipeline was inaugurated in March 2023 during the tenure of the Sheikh Hasina-led government and has the capacity to transport around 2 lakh tonnes of diesel annually.

"According to the agreement, at least 90,000 tonnes of diesel should be imported to Bangladesh from India within six months.

"The consignment arriving today (Tuesday) is 5,000 tonnes, and we hope that within the next two months we will bring in the total diesel amount for the entire six months," the BPC chairman said.

Outstanding power bills

Meanwhile, leaders of the Bangladesh Independent Power Producers' Association (BIPPA) met State Minister for Power and Energy Aninda Islam Amit, raising the issue of outstanding power bills amounting to Tk14,000 crore as well as liquidated damages (LD) imposed by BPDB for failing to provide electricity as demanded.

During the meeting, a six-member BIPPA delegation, led by its President David Hasanat, urged the government to release funds to clear the outstanding power bills so that Letters of Credit (LCs) can be opened to import fuel and keep HFO-based power plants running during the upcoming summer.

Power Division sources said the state minister acknowledged the seriousness of clearing the bills and assured that the matter would be settled soon.

No plan to hike fuel prices 

The state minister also reiterated the government's position on a possible fuel price hike amid rising global prices and panic buying.

"There is no reason to increase the prices of fuel or electricity," he said.

Earlier, on 5 March, all state-owned oil marketing companies proposed raising fuel prices to discourage panic buying as Bangladesh faces growing uncertainty over energy supplies amid escalating tensions in the Middle East.

Managing directors of Padma Oil Company Limited, Jamuna Oil Company Limited, and Meghna Petroleum Limited jointly recommended a price hike, arguing that higher prices could discourage consumers and businesses from stockpiling fuel.

The state minister also said Bangladesh has the capacity to maintain normal energy and power supply until May.

"The concerns and anxiety people are feeling over fuel and electricity will fade soon. At present, there is no shortage in the country," the state minister said.