Bangladesh Petroleum Corporation (BPC) is unhappy over the stockpile of imported petroleum fuel as it has been paying demurrage charges for delay in unloading the fuel meant to be used by power plants.
BPC finance director Abdur Rauf has already sent a letter to Bangladesh Power Development Board (BPDB) and sought over $39.40 lakh in compensation for the demurrage fees it had to pay for the delay in unloading imported fuel from foreign oil tankers.
In April and May this year, BPC had to pay $647943.75 in demurrage fees for delay in unloading furnace oil imported from Emirates National Oil Company (ENOC), the Petrolimex Singapore Ptc. Limited (Petrolimex), the Unipec Singapore Ptc Limited (Unipec) and Petco Trading Labuan Company Limited (PTLCL).
The BPDB earlier submitted requisitions for 92,999 tons furnace oil for June and was supposed to procure 3099 tons fuel per day from the state-run oil importer. But the power distributor consumed 2,081 tons fuel per day between June 1 and June 23, which is 33 percent lower than its consumption target set for the period.
Besides, BPDB’s demand for fuel was 92,999 tons and 96,098 tons in April and May respectively. “But your consumption was 40.56 percent and 63.48 percent lower than the target,” the BPC informed the BPDB chairman recently.
BPDB officials said the demand of electricity declined this year due to sufficient rainfall and cool weather.
Meanwhile, the Energy and Mineral Resources Division (EMRD) said ‘no’ to a proposal of the Power Division to adjust fuel tariff supplied to power plants for electricity generation.
Responding to the Power Division’s proposal, EMRD deputy secretary Md Mokammel Huque informed the Power Division that the proposal requires a policy level decision from the government.
“So the EMRD has nothing to do about the matter,” he told power secretary in a letter on June 16 this year.
Earlier, state-owned Bangladesh Power Development Board (BPDB) sought to reduce petroleum fuel prices in accordance with international market rate to slash power subsidy to Tk 2000 crore a year.
The BPDB generates 2,875MW of electricity from costly liquid fuel-fired power plants, especially the rental and quick rental ones.
Bangladesh Petroleum Corporation (BPC) is now supplying furnace oil at Tk 62 per litre and diesel at Tk 68 a litre, BPDB secretary said.
“Some private power projects are allowed to import furnace oil by their own at Tk 35 to Tk 40 a litre that allows them to reduce their electricity production cost,” he informed the power division.
“Petroleum fuel tariff should come down to a reasonable level in accordance with international fuel prices to keep power tariff and government’s debt burden to a reasonable level.” Md Jahirul Huque said.
Petroleum fuel prices have come down in the international market, the letter said.
The BPDB produces electricity at Tk 17.06 per unit from furnace oil-fired plants and at Tk 27.91 per unit from diesel-fired plants.
The BPDB generates 28 percent of the required electricity from liquid fuel fired power projects.