Tk 125b approved to import fuel  from China, Indonesia

The government has approved the import of refined fuel worth Tk 125.37 billion ($1.14 billion) to meet the country’s energy needs for the remaining three and a half months of the year.

The fuel will be procured from China’s Unipec and PetroChina, and Indonesia’s BSP under government-to-government (G2G) agreements, following a decision at a meeting of the Cabinet Committee on Government Purchases (CCGP) on Wednesday.

The existing requirement to split purchases 50-50 between G2G and international tenders was waived at the meeting, the finance ministry said.

Separately, the Cabinet Committee on Economic Affairs (CCEA) approved the tender-free purchase of an additional 695,000 tonnes of gas oil and jet fuel for the same period.

The approvals come amid an ongoing energy supply crunch linked to conflict in West Asia.

Shipping through the Strait of Hormuz has been effectively suspended for nearly six months, and Houthi activity in the Bab-el-Mandeb strait has created fresh disruptions, forcing Bangladesh to source fuel from outside the region at higher prices and often without competitive tender.

The government had previously approved tender-free imports of 18 cargoes of liquefied natural gas (LNG) due to falling supplies and reserves.

In August alone, 22 LNG cargoes were approved across two rounds, along with 5,000 tonnes of LPG to stabilise the domestic market.    �"bdnews24