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Fuel overview

The petroleum sector is considered one of the most sensitive sectors of an economy. Macro- economic indicators are highly sensitive to the price of petroleum products. The oil and petroleum industry of Bangladesh is mostly under the control of Government. With a view to providing petroleum products to all consumers at equal price irrespective of transportation cost, the government established Bangladesh Petroleum Corporation (BPC) by a presidential Ordinance in 1976. Presently BPC is composed of three oil marketing companies, two blending plants, one LPG bottling company and a refinery as its subsidiaries.

The production, processing, refining and marketing of petroleum products in the country is vested exclusively with the Government of Bangladesh as per the Bangladesh Petroleum Act, 1974. The Petroleum Act also specifies the authorities, functions and responsibilities of BPC including establishment of plants & infrastructure, building necessary facilities and their extensions for marketing of petroleum products; monitoring coordination of the subsidiary companies of BPC and any other functions and responsibilities as directed by the government. Intense competition has been prevailing in the lubricant market due to the presence of more than 50 market players along with the brands marketed by three state owned oil marketing companies. Marketing of petroleum products is responsibility of three oil marketing companies namely:

  1. Padma Oil Company Ltd (POCL)
  2. Jamuna Oil Company Ltd (JOCL)
  3. Meghna Petroleum Ltd (MPL).

At present only about 30% of the market demand of the lubricant products are served by the three oil marketing companies. It is notable here that BPC has no price control on the lubricant’s products. The pricing structure is settled by the Government at ex-refinery level, depots level, and also at consumer level in different distances. The commission at each level of suppliers namely oil marketing companies, agents, dealers are also fixed by the Government. As per the requirement of the state, the Government of Bangladesh imports crude oil and refined oil, then the crude oil is refined through Eastern Refinery Ltd. (ERL), another subsidiary of BPC and distributed through its oil marketing companies. There exists some special arrangement among the three oil marketing companies with a few direct customers. Among the direct customer groups, there are some Government organizations (PDB, Bangladesh Railway, and Defence Service), autonomous body (Chattogram Port Authority, BIWTA, Bangladesh Ordnance Factory) and nationalized industries etc. The oil marketing companies are engaged in marketing of oil products and the income it earns is termed as ‘Margin’ that is fixed by and determined by the Government. Sales net of cost of goods sold (net earnings from petroleum products) is recorded in the financial statements as a form of net revenue rather than gross revenue.

Fuel storage and transportation

Present annual demand of petroleum products in the country is Approx. 3,300,000 tons. Total storage capacity of petroleum products in the country is 12,00,336 MTs, of which the storage capacity at Eastern Refinery Ltd is 5,04,560 MT. In the main installations of three oil-marketing companies of BPC the storage capacity is (Padma Oil Company Ltd-2,54,248 MTs, Jamuna Oil Company Ltd-1,84,794 MTs, Meghna Petroleum Ltd-2,15,275.

Other than Chattogram, oil companies have oil depots in different parts of the country, located at Godenail, Fatullah, Daulatpur, Bhairab, Chandpur, Baghabari, Balashi, Chilmari, Ashuganj, Rangpur, Dhaka, Barisal, Jhalokati, Sreemangal, Sylhet, Parbatipur, Rajshahi, Natore and Harian (Rajshahi).

From Chattogram, 82% of petroleum products are transported by river (coastal tanker), 6% by RAILWAY (Tank wagon or Box wagon), 10% by road (Tank lorry/truck) and 2% by other local means (boat, push cart or van etc).

There are 72 coastal tankers (850-1200 tons capacity each) for transportation of petroleum products from Chattogram to Godenail, Fatullah, Daulatpur, Barisal, Jhalokati, Chandpur, Ashuganj and Bhairab depots. There are 33 shallow Draft Tankers (400-450 tons capacity each) for transportation of products from Godenail or Fatullah to Baghabari, Chilmari, Balashi and Chandpur depots.

There are about 1,000 railway tank wagons (meter gauge and broad gauge). From Chattogram, products are dispatched to Sylhet, Sreemangal, Rangpur and Dhaka oil depots by rail through meter gauge railway. From Daulatpur products are dispatched to Natore, Parbatipur, Harian and Rajshahi depots by rail through broad gauge railway.

There are 759 filling stations, 37 consumer pumps, 1,480 agents/distributors, 1273 LPG (LIQUEFIED PETROLEUM GAS) dealers and 305 Packed Point Dealers appointed by three oil-marketing companies in the country for retail trading. There are more than 6,000 tank Lorries owned by dealers/distributors for transportation of petroleum products from oil company depots to their selling points.

Item wise storing Capacity of 3 main players are shown in the following charts:

Sale of Petroleum Products during last 5 Years (Qty in MTs)

 Product

2013-14

2014-15

2015-16

2016-17

2017-18

JetA-1

323327

338829

347323

376700

408272

HOBC

117452

126114

147557

186911

230280

MS

178674

166823

137360

232359

284668

SKO

289871

263029

213685

170993

138403

HSD

3242554

3396061

3606404

4000044

4835712

LDO

1064

2666

2758

660

96

JBO

23538

18729

16859

17133

17910

FOHS

1202505

906771

711889

806440

925150

LUBE

17823

17869

17445

18752

19812

SBPS

368

234

207

865

1993

MTT

7821

7038

2037

6475

10338

LPG

17529

17424

16050

16370

16303

BITUMEN

62440

59836

36446

55028

59399

Total

5484966

5321423

5256020

5888730

6948336

INC/DEC (+/-)

398497

-163543

-65403

632710

1059606

Decrease / increase %

7.83

-2.98

-1.23

12.04

17.99


Some important points to note

Seasonal variation in supply of POL

During monsoon demand is more for irrigation in Northern and Southern part

Are there national priorities in the availability of fuel?

Yes  for CNG, LPG, Jet A! and diesel

Is there a rationing system?

No

Is fuel to lower income/vulnerable groups subsidized?

Yes

Can the local industry expand fuel supply to meet humanitarian needs?

No, if the needs are significant, the whole sector being at the limit. Furthermore, in case of significant damage due to natural disaster, remote areas will be difficult to supply.

Is it possible for a humanitarian organization to contract directly a reputable supplier/distributor to provide its fuel needs?

Yes (UN, INGO's, and international organizations)

For more information on government and fuel provider contact details, please see the following links:

4.1 Government Contact List

4.7 Fuel Providers Contact List here.

Information may also be found at: http://www.mytravelcost.com/petrol-prices/ which is updated monthly. 

Fuel pricing

As mostly all types of POL items are imported from different sources either as crude or finished product, the local price varies on the international market and Govt policies. Anyway, the present pricing of different Petroleum products is shown below (as on Oct 2019):

 No

Product Name

Local Selling Price (BDT/litre)

Effective Date

1

 HSD (Diesel)

   65.00

24/04/2016

2

 SKO (Kerosene)

   65.00

24/04/2016

3

 HOBC (Octane)

   89.00

24/04/2016

4

 MS (Petrol)

   86.00

24/04/2016

5

Jet A-1 (Chattogram)

For Domestic Flight

For International Flight

13/09/2019

71.00 (BDT/litre)

0.69 (USD/litre)

Jet A-1 (Dhaka)

71.00 (BDT/litre)

0.69 (USD/litre)

13/09/2019

6

 LP Gas (12.50kg per Cylinder)

   700.00/Cylinder

19/06/2009

7

 SBPS

  89.00

20/02/2017

8

 MTT

  69.00

20/02/2017

9

 JBO

   90.00

29/12/2015

10

 LDO

   68.00

11/01/2013

11

FO (Furnace Oil)

 42.00

01/04/2016

12

Light Motor Spirit (LMS)

112.00

01/07/2019

13

FO: Bunker Price

(Chattogram Port)

USD 665/MT

24/09/2018

FO: Bunker Price

(Mongla Port)

USD 670/MT

24/09/2018

14


HSD: Bunker Price

(Chattogram Port)

USD 970/MT

24/09/2018

HSD: Bunker Price

(Mongla Port)

USD 975/MT

24/09/2018

15Bitumen Selling Price

80/100 Grade

(in BDT)

60/70 Grade

(in BDT)


Drum bitumen (per drum)

9.000.00

9,400.00

01/07/2019

Bulk bitumen (per MT)

54,000.00

56,500.00

01/07/2019

Seasonal variations 

There are seasonal variations as during monsoon demand is increased for irrigation in Northern and Southern part.

Seasonal Variations

Are there national priorities in the availability of fuel? (i.e. are there restrictions or priorities for the provision of fuel such as to the military?)

Yes  for CNG, LPG, Jet A1 and diesel

Is there a rationing system?

No

Is fuel to lower income / vulnerable groups subsidized?

Yes

Can the local industry expand fuel supply to meet humanitarian needs?

Not if the needs are significant, the whole sector being at the limit. Furthermore, in case of significant damage due to natural disaster, remote areas will be difficult to supply.

Is it possible for a humanitarian organization to directly contract a reputable supplier / distributor to provide its fuel needs?

Yes

Fuel transportation

After procuring petroleum products, they are distributed to different destinations all over the country. Petroleum products are mainly distributed by 3 modes of transportation. Due to higher capacity and cost effectiveness water way is the best choice. Padma, Meghna and Jamuna all these 3 companies use almost 90% of their product by river.

Particulars

Padma Oil

Meghna Petrolium

Jamuna oil

River

90%

82%

88%

Railway

8%

6%

10%

Road

2%

12%

2%

 

Disclaimer: Inclusion of company information in the LCA does not imply any business relationship between the supplier and WFP / Logistics Cluster, and is used solely as a determinant of services, and capacities.

Please note: WFP / Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service provider.