The Cabinet Committee on Public Purchase approved the decision on Sunday.

Officials of state-owned Bangladesh Petroleum Corporation (BPC) said the recent price hike of compressed natural gas (CNG) has been the main reason for an increase in the demand for octane.

The government raised the price of CNG to Tk 43 per cubic metre from Tk 38 with effect from July 1 this year.  

The BPC recently sent its proposal in this regard to the Cabinet Division where it mentioned that the CNG price hike was the main reason for creating an extra demand for octane. 

BPC officials said they have already concluded negotiation with Indonesian state petroleum agency - PT Bumi Siak Pusako (BSP), Zapin - for the proposed import and sent the proposal to the Cabinet Committee on Economic Affair and also the Cabinet Committee on Public Purchase for approval.

“Once we receive approval from the two committees, we’ll move to place the import order to supply the petroleum fuel,” a senior BPC official said, declining to be named.

Officials said the country annually requires about 3,00,000 metric tons of octane, which is officially named as Mogas.

Of this, about 200,000 mt is produced locally while the remaining 100,000 mt is imported. “But this year, the growing demand has put extra pressure to import additional 30,000 mt for the month of November and December,” said a BPC official.     

Official documents revealed that the BPC settled its deal with Indonesian BSP for import of 30,000 mt of octane fixing the premium at $4.9 per barrel while per barrel of octane was estimated to be $68.24.

Considering this price, the BPC will require Tk 159.92 crore to import the proposed petroleum fuel, according to the documents.