Letters
8 years ago

Diesel import through pipeline

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A report carried by a national daily recently indicates that Bangladesh Petroleum Corporation (BPC) recently suggested the government to fix premium rate of US$1.78 for each barrel of diesel from India through 130 km long pipe line. The pipe line would be constructed by India against proposal of India against diesel export for next 20 years. One million tons of diesel per year will be imported through the pipeline. The technical committee organized by Energy and Mineral Resources division of Bangladesh suggested that US$5.73 per barrel premium rate be fixed if India agrees to construct the pipeline with its own cost. The BPC suggested fixing US$ 2.70 as international premium and US$3.03 as recovery cost for pipeline construction. The 130km pipeline is supposed to start from Siliguri, Asam, India to Parbatipur, Bangladesh.  On March 2016 Bangladesh imported 2,281 barrel diesel at US$7.0 premium per barrel. It may be mentioned here that recently the BPC procured diesel from Singapore and Middle Eastern countries under open tendering at the rate of  US$2.37 premium per barrel diesel. A series of meetings between Bangladesh and Indian representatives failed to produce any result as India asked for higher premium i.e., US$9.00 per barrel.
 Was importing diesel at US$ 7.00 premium per barrel in March 2016 from India by Bangladesh Railway justified when it could be imported at a premium rate of US$2.73 per barrel from Singapore or Middle Eastern countries? We expect a rational treatment from India. Bangladesh has given transit facility to India. Did Bangladesh ask for the cost saved by India in this way as transit fee? We shall do trading with neighbour India but price must be at par with international market price and quality must not be compromised. According to international norms India is the beneficiary of its diesel export to Bangladesh. The cost of construction for the 130 km pipeline should be borne by the beneficiary.
I like to draw attention of the authority concerned of Bangladesh to enhance business with India but on mutually beneficial terms.
Md Ashraf Hossain
120, Middle Bashabo, Dhaka-1214.
[email protected]

 

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