The federal government has resumed importing LNG (liquefied pure fuel) from the worldwide spot market.
In line with official sources, the Cupboard Committee on Authorities Buy (CCGP) accepted a proposal of the state-owned Petrobangla to import one cargo of LNG.
Agriculture Minister Abdur Razzaque presided over the assembly held nearly on Wednesday.
The federal government had earlier suspended the import of LNG from the worldwide spot market in July 2022 following the extreme hike in costs of the fuel towards the backdrop of the Russia-Ukraine struggle.
Earlier, Bangladesh was buying LNG from the spot market between $6-10 per MMBtu. After the beginning of the struggle in February this 12 months, the worth crossed $37 per MMBtu.
Official sources mentioned the Vitality and Mineral Sources Division positioned the proposal on behalf of its subordinate physique Petrobangla to import the LNG.
“The worth of LNG was quoted at $19.78 per MMBTu (Million British Thermal unit) and the price of the full consignment was set at Tk850 crore,” mentioned a supply on the Vitality and Mineral Sources Division.
He famous that the federal government has deliberate to import a complete of 12 LNG cargos in 2023 to satisfy the rising demand for pure fuel.
As a part of the austerity measures, the federal government final 12 months suspended energy era from diesel-fired energy vegetation and in addition import of the LNG as the costs of the merchandise went too excessive.
Because of this, the federal government was incurring an enormous monetary loss in importing LNG at greater costs and promoting it to the native market at decrease costs.
However not too long ago, the federal government raised the fuel costs at retail stage for energy vegetation, industries, and business customers to scale back subsidies within the sector as per recommendation of the Worldwide Financial Fund (IMF) to get a mortgage from the multilateral lending company.
As per the latest announcement, the retail worth of fuel was raised by 14.5% to 178.9% for industries, energy vegetation and business institutions, who collectively account for 78% of fuel use in Bangladesh whereas worth of fuel for captive energy vegetation and industries, fuel was raised to Tk30 per cubic metre.
This may be a 150% hike for big industries, 154.7% for medium industries and 178.3% for small and cottage industries. For captive energy vegetation, it might be a rise of 87.5%.
Industrial institutions like accommodations and eating places should pay Tk30.50 per unit, up 14.5% from the present price.
The tariff for households, fertiliser manufacturing, CNG-run autos and tea gardens will stay unchanged.
The nation produces about 2,300 million cubic ft per day (MMCFD) fuel from native fuel fields to satisfy a requirement of over 2,800MMCFD leaving a niche of 500MMCFD.
To fulfill this fuel the federal government has to import an enormous LNG from overseas of which it meets 350MMCFD fuel via importing it from Qatar and Oman below long-term agreements whereas remaining 150MMCFD is being imported from the worldwide spot market.