Bangladesh to pay more for fuel oil for power

Bangladesh will import 240,000 tonnes of fuel oil in 2012 for power generation at sharply stronger premiums.

Two suppliers have concluded talks with  Bangladesh Petroleum Corporation, a senior company official said.
Emirates National Oil Company will supply 160,000 tonnes of 180-centistoke and another 80,000 tonnes will be sourced from Indonesia's Bumi Siak Pusako, the official said.

The premium for fuel oil is sharply up from the $32 a tonne for its July to December term cargoes last year.

Bangladesh's fuel oil imports are likely to more than double this year to around 1.5 million tonnes for power generation.

Domestic demand for fuel oil has been swelling as a shortfall of natural gas supply forced the country to turn to costly oil-fired quick rental power plants.