Nepal | August 08, 2020

Indian Oil Corporation nears first deal to export fuel to Bangladesh

Reuters
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New Delhi/Dhaka, May 18

Indian Oil Corp (IOC) , country’s top refiner, is close to winning its first contract to supply diesel, jet fuel and gasoline in the second half of this year to state-run Bangladesh Petroleum Corp (BPC), two sources with knowledge of the matter said.

IOC mostly stays away from participating in term tenders for fuel exports as the refiner sells most of its fuel in the local market, besides supplying its retail outlets in Nepal and Bhutan.

“Now (the) scenario is different, demand is falling so IOC will have some spare products to export,” said one source.

BPC had sought bids for imports of 870,000 tonnes of gasoil with sulphur content of no more than 500 parts per million (ppm), 120,000 tonnes of jet fuel, 20,000 tonnes of 180-centistoke high sulphur fuel oil and 30,000 tonnes of 95-octane gasoline in a tender issued this month.

IOC emerged as a lowest bidder for supply of up to 430,000 tonnes of diesel and 50,000 tonnes of jet fuel during July to December and 30,000 tonnes of gasoline through two equal size parcels in August and November, the two sources said.

Seven companies took part in the tender. For the first time, Indian Oil Corp and Puma Holding participated in the tender, a source at BPC said.

Other participants were Petrochina, China’s Unipec, Emirates National Oil Co, Thailand’s PTT, and trader Vitol, the source added.

Indian Oil Corp placed premiums to Middle East quotes of $2.60 a barrel for diesel and $4.48 for gasoline 95, the two sources said.

IOC did not respond to a Reuters e-mail seeking comment.

“Currently we are evaluating their offers. After verifying all details, we will send the proposal for the board’s approval,” Abu Hanif, senior general manager (commercial and operation) at BPC said, without elaborating.

A version of this article appears in e-paper on May 19, 2020, of The Himalayan Times.

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