Photo : Collected
Bangladesh Petroleum Corporation (BPC) is facing a significant challenge in paying outstanding bills to international fuel oil suppliers due to a dollar shortage. The state-owned organization owes foreign companies $500 million, approximately Tk 6000 crore. This outstanding amount has created complications in importing fuel oil, as suppliers are unwilling to provide oil without receiving payment for previous invoices.
There are growing concerns that if the payments for imported refined and crude oil are not made promptly, it could disrupt the scheduled oil imports for September, potentially affecting the availability of fuel in the country.
According to BPC, till August 7, the country had 4,87,371 metric tons of diesel, 56,232 metric tons of jet fuel, 37,170 metric tons of octane, 2, 33, 84 metric tons of petrol and 58 ,777 metric tons of furnace oil.
A BPC official said that with the stock up to Tuesday, 33 days of diesel, 15 days of octane and 14 days of petrol can meet the demand.
An official of BPC told the Daily Messenger “If the supplier companies do not agree to provide the transportation support, we will rent the ship from another company for bringing the crude.”
He added, “now we have given a letter to BPC. They may take some time to get approval from the ministry. Then maybe they will make us clear about the payment schedules.”
BPC has set a target of 59,10000 metric tons of refined fuel oil import in the financial year 2024-2025. Out of this, 30,80 metric tons of refined fuel oil will be imported under G-to-G agreement and 28,30000 metric tons of refined fuel oil will be imported through open tender. Apart from this, BPC has set a target of 14 lakh metric tons of crude oil import. Refined fuels include diesel, mogas, jet A-1, furnace oil and marine fuel.
The three owners of the ship served legal notice to Bangladesh Shipping Corporation (BSC), entitled for transporting imported oil on behalf of Bangladesh Petroleum Corporation (BPC), to have $13 million freight charge.
According to BSC, the BSC transports the imported fuel of BPC in accordance with the agreement. They take the bills in the domestic currency and pay the freight of the foreign ship in foreign currency. Already, the BSC has communicated with BPC to resolve the crisis.
However, the BSC take the bills in the local currency and pay the freight of the foreign ship in foreign currency. In the last two months, the BSC failed to repay $1,20,05,000 due to dollar crisis.
The 'MT Omera Legacy' brought 5,700 metric tonnes of crude at a freight charge of $43,40,204, on November 7, MT Daphne brings 8,212 tonnes Light Crude at a freight charge of $46,86,585, on November 7 'MT Gamsunuru' brought 1,900 metric tons at a freight charge of $39,64,074.
Meanwhile, the owner of the three ships gave legal notice to the BSC, without getting the freight that created an uncertainty for the BSC’ supply of fuel oil.
In 2023, BSC paid $40.34 million as freight for 9 mother tankers. Currently, there are not enough US dollars in BSC’s funds. In 2023-24 fiscal year, three ships of BSC fleet are drydocked in foreign ports. About $15 million will be required for these ships but Bangladesh Bank could not provide the amount.
On the other hand, the arrears of the oil supplying companies to the Bangladesh Petroleum Corporation (BPC) are about Tk 3,850 crores.
Messenger/Fameema
