Bangladesh to import more diesel, octane to ease Iran war fuel pressure

 
The government has decided to import another 150,000 tonnes of refined diesel and 25,000 tonnes of octane to tackle fuel supply pressures stemming from the Iran war.

The Cabinet Committee on Government Purchase gave in-principle approval to the imports "to meet emergency demand" at a meeting on Wednesday afternoon, with Finance Minister Amir Khosru Mahmud Chowdhury in the chair.

The Cabinet Committee on Economic Affairs also approved in principle the import of a further 250,000 tonnes of diesel and 25,000 tonnes of octane. That proposal will now be placed before the purchase committee, according to bdnews24.com. 

The government has been under pressure over fuel supplies after shipping through the Strait of Hormuz was effectively disrupted because of the Iran war.

Although authorities have tried to keep supplies normal by importing fuel from different sources, long queues have persisted at filling stations for more than a month.

The conflict has also pushed up oil prices on the global market. The government had earlier been considering raising domestic fuel prices in May if necessary.

On Apr 18, it raised fuel prices.

The price of diesel was increased by Tk 15 per litre to Tk 115, octane by Tk 20 to Tk 140, petrol by Tk 19 to Tk 135, and kerosene by Tk 18 per litre to Tk 130.

At the time, the power and energy ministry said the new retail prices had been fixed in line with rising fuel prices on the global market.

The purchase committee meeting also approved the procurement of 30 million 30kg hessian sacks.