* High global price and demand pile on subsidy pressure
* Fuel oil contracts still pending as premiums high
By Ruma Paul
DHAKA, June 1 (Reuters) - Bangladesh Petroleum Corporation
(BPC) has concluded talks with six suppliers to import up to
1.356 million tonnes of gasoil and 190,000 tonnes of jet fuel in
the second half of 2012 at stronger premiums than its current
"So far, we have completed negotiations with six national
oil companies to secure supplies of the oil products for the
second half," a senior BPC official said.
Kuwait Petroleum Corp (KPC) will supply 450,000 tonnes of
gasoil and 120,000 tonnes of jet fuel for July-December
delivery. Malaysia's Petronas will provide 310,000 tonnes of
gasoil and 70,000 tonnes of jet fuel.
Another 300,000 tonnes of gasoil will be sourced from
Egypt's Middle East Oil Refinery and 90,000 tonnes of gasoil
from Emirates National Oil Company (ENOC).
BPC, the country's sole oil importer and distributor, will
receive 132,000 tonnes of gasoil from Philippines National Oil
Company (PNOC) and 74,000 tonnes of gasoil from PetroChina.
Premiums have picked up in the Middle East ahead of peak
The company has finalised its gasoil contract for the second
half of the year at a premium of $3.80 per barrel over Middle
East quotes, up nearly 10 percent from the $3.50 per barrel
premium for its January-June contract, and up 15 percent from
the same period last year.
The term contract for jet fuel has been fixed at a premium
of $4.80 per barrel over Middle East quotes, up from the current
$4.50 per barrel, and from $4.30 per barrel over the same period
Other than gasoil and jet fuel, BPC will buy 64,000 tonnes
of 95-octane gasoline, of which 48,000 tonnes will be supplied
by PNOC and the remaining 16,000 tonnes by PetroChina, and
40,000 tonnes of kerosene, sourced from Petronas.
For 95-octane gasoline, the BPC will pay a premium of $7.35
per barrel, up from $7.20 percent currently and for kerosene
$4.80 a barrel.
Premiums for fuel oil have yet to be finalised partly
because suppliers are asking for much higher levels.
BPC has been making huge losses as it sells fuel to local
consumers at much lower rate than the price it pays to the
Its accumulated loss was nearly $3.0 billion in the fiscal
year ended in June 2011, as a shortfall of natural gas forced
the country to turn to costly oil-fired power plants to resolve
its crippling electricity shortages, BPC officials said.
The heavy imports coupled with high global prices have piled
pressure on the country's balance of payments and subsidy bill.
The country will have to spend nearly $6 billion on
importing oil in the 2011/12 fiscal year, more than double of
what it spent in the previous year, they added.
(Editing by Anis Ahmed and Anthony Barker)