Private sector maybe allowed to import fuel oil

Bangladesh’s cabinet on Monday approved a plan that would launch a discussion on how the government can engage the private sector in importing fuel oils to deal with the country’s energy crisis.

Cabinet Secretary Khandker Anwarul Islam told this after a cabinet meeting held at the Prime Minister’s office with PM Sheikh Hasina in the chair.

The cabinet members discussed the matter while giving the final approval on the draft of the “Bangladesh Energy Regulatory Commission (Amendment) Ordinance, 2022” on Monday.

The cabinet has also directed the energy ministry to take necessary steps in this regard soon, Islam said.

“The meeting discussed whether fuel and other energy products can be imported by the private sector,” he said.

In that case, the meeting discussed if it would be better if the private sector imports oils and sells those in the market.

The cabinet secretary said the law, as it stands now, allows the import of oil by state agencies and refines it locally.

“Now nobody can market fuel oils except the Bangladesh Petroleum Corporation. Usually, 41 to 42 percent of oil is refined by the BPC by importing crude oil,” he added.

Other questions raised in the meeting were: Will the private sector bring crude or refined oil? How will it be sold? Who will buy it? And, what will be the fate of the by-products, such as bitumen?

“There are many issues that need to be discussed. But the cabinet directed the authorities concerned to take a decision as soon as possible,” said the cabinet secretary.

However, two options have been discussed regarding refined oil import at the meeting, Islam said.

Either the oil can be sold to BPC or BPC can allow the private sector to sell it directly by amending the existing laws. In this case, the BSTI should keep monitoring whether the refined oil is up to the mark and acceptable to consumers, he said.

Bashundhara Group has already set up a bitumen plant in the country to produce bitumen, which used to be imported fully.

The cabinet secretary said the cabinet has asked the authorities concerned to launch a discussion in this regard very soon.