Dhaka, Friday, February 11 (NNS): Bangladesh will import 400,000 tons of diesel in two years from India to meet its growing demand for energy in the irrigation sector, official sources said.
The decision came at a meeting of the cabinet committee on purchase held in Dhaka Thursday with Finance and Planning Minister M Saifur Rahman in the chair.
Earlier, the country imported 200,000 tons of diesel from the state-run Indian Oil Corporation, but the one-year supply contract expired in December 2004.
It will import two 200,000 tones of diesel in 2005 and two more 200,000 tones in 2006 from the corporation at the same premium of $3.90 per barrel as it did in 2004. The premium is paid in addition to the price.
Most of the 2.3 million tons of diesel consumed each year in Bangladesh is imported from Kuwait. It's mainly used in the agricultural sector, the backbone of this country's economy.
The import of diesel and jet fuel from India cost less than that from Kuwait or other Middle East and Southeast Asian countries, sources in the ministry said, adding that the Indian firm takes US$3.9 dollar of premium per barrel of diesel while the Kuwait charges $4 dollars. (End/si)
