DHAKA, June 29 State-owned Bangladesh Petroleum
Corporation (BPC) has concluded second-half 2014 term
negotiations with eight companies for oil products at mostly
unchanged current premiums, a senior BPC official said on
Premiums will be unchanged for all oil products other than
fuel oil, said the official with the direct knowledge of the
BPC finalised its gasoil contract for the second half of
2014 at a premium of $4.80 per barrel over Middle East quotes,
while the term contract for jet fuel was fixed at a premium of
$5.80 per barrel, unchanged from January-June deals.
The premium for fuel oil for the second half of 2014 will be
$34 a tonne to Singapore spot quotes, down from $35 a tonne for
current term cargoes and from $39.50 a tonne a year ago.
Suppliers for Bangladesh's middle distillates contracts are
Kuwait Petroleum Corp (KPC), Malaysia's Petronas, Emirates
National Oil Company (ENOC), Philippines National Oil Company,
Vietnam's Petrolimex, Indonesia's Bumi Siak Pusako, PetroChina
Apart from oil products, BPC is also importing 1.3 million
tonnes of oil in 2014 for its sole refinery, up more than 8
percent from a year ago.
Bangladesh's demand for fuel is growing sharply as a
shortfall of natural gas has forced it to turn to oil-fired
power plants to resolve electricity shortages.
The government heavily subsidises BPC, which sells fuel oil
to the local market at much lower rates than import prices.
BPC takes loans from the Islamic Development Bank and foreign
banks to meet growing oil import bills.
(Reporting by Ruma Paul; editing by Keiron Henderson)