Photo : Messenger
The government has introduced a policy allowing the private sector to import crude oil, set up refineries, store fuel in their own storage, and distribute it.
Experts believe that this initiative has been taken to facilitate businesses. Previously, the private sector had been granted permission to generate electricity through rental and quick rentals, which have currently become a burden for the country. Presently, these plants are withdrawing capacity charges without generating a single unit of power.
According to the policy, the private sector will import crude oil, refine it in their own refineries, and distribute it among retail consumers.
The policy stipulates that private refineries must sell a minimum of 60 percent of the total fuel oil output – including diesel, octane, petrol, jet fuel, furnace oil, and by-products – to the Bangladesh Petroleum Corporation (BPC) at a government-determined price during the initial three years from the commencement.
Professor Shamsul Alam, a prominent energy expert and advisor to the Consumers Association, told the Daily Messenger, “The engagement of the private sector with the energy and power sector is an intentional decision. Energy and power are the service sectors of the government. They have to ensure power and fuel, but the government has made these sectors profit-earning.”
He added that in any crisis, businesses will pressure the government to hike fuel oil prices, leading the government to be trapped by the syndicate. They may also store fuel products to create instability, similar to other importers who import daily necessities.
Officials from the Energy Division affirmed that the move to open the fuel oil refinery and retain it in the private sector has been initiated based on regulatory frameworks outlined in the relevant laws and rules, including the Bangladesh Petroleum Corporation Act 2016 and the National Energy Policy of 1996.
Private companies engaging in fuel oil marketing under their management will be required to pay a service charge of Tk1 per litter to the BPC.
The policy states that a willing private enterprise should have a minimum annual turnover of Tk5,000 crore, or its equivalent in US dollars for any three out of the last five years. It is also required to establish a refinery with a crude fuel oil processing capacity of at least 15 lakh tonnes per year, either under its ownership or through joint ownership. The policy will be implemented at any time.
Messenger/Disha
