The country’s energy sector heavily relies on imports to fulfil the country’s demand. To meet this demand, Bangladesh Petroleum Corporation (BPC) and Petrobangla engage in strategic fuel import initiatives, collaborating with diverse state-owned entities globally.
In the 2022-23 financial year, furnace oil import decreased by 27 per cent, while diesel import has increased by 32 per cent.
Analysing the import product data of FY 2021-22 and 2022-23, 45 lakh 57 thousand 382 tonnes of furnace oil was imported in FY 2021-22, amounting to a value of Tk 22,554 crores.
A 33 lakh 42 thousand 516 tonnes of furnace oil was imported in FY 2022-23, amounting to a value of Tk15 thousand 921 crore.
In the subsequent fiscal year 2022-23, the import figures for this oil dwindled to 3,342,516 tonnes, valued at TK 15,921 crore. This signifies a reduction of 1,214,866 tonnes, equivalent to a 27 per cent decline in import volume during the year.
The revenue shortfall from this particular product amounted to a significant sum of Tk 1,544 crore for Chittagong Custom House. During the fiscal year 2021-22, the custom house garnered substantial earnings, totaling Tk 5,728 crore, from furnace oil. However, in the subsequent FY 2022-23, the revenue generated decreased notably, reaching Tk 4,184 crores.
Meanwhile, the FY 2022-23 witnessed the importation of a substantial 4,554,875 tonnes of diesel, contributing to an import valuation of Tk27,380 crore.
During the previous FY 2021-22, the same product was brought into the country, amounting to a significant figure of Tk 3,446,053 crore, from an import quantity of Tk 9,195 crore. Consequently, this accounts for a noteworthy rise of 1,108,822 metric tons, corresponding to a remarkable 32 per cent growth in revenue for this specific product.
Diverging from the product's import trend, Chittagong Custom House experienced a rise in earnings, recording an increasing of Tk 2,949 crore. Specifically, in the fiscal year 2021-22, Chittagong custom earned revenue of Tk 3,814 crore, a figure that escalated substantially to reach Tk 6,763 crore during the subsequent fiscal year 2022-23.
Insiders say the driving factor behind the 27 per cent reduction in furnace oil imports during the year can be attributed to a shift in energy sources, with the majority of the country's energy plants transitioning to natural gas. Additionally, a substantial 65 per cent of the energy plants that previously operated on furnace oil have now been decommissioned.
The closure of these energy plants was attributed to the prevailing dollar crisis, with officials citing inadequate government payments for the operation of furnace oil-based facilities. Consequently, financial constraints prevented these energy plants from importing the required fuel, leading to their shutdown. This sequence of events has contributed to a gradual decline in furnace oil imports over the course of time.
Meanwhile, crude oil is among the highest imported products of energy sector. Nevertheless, the importation of this vital resource also experienced a decline of four per cent during FY2022-23.
In the preceding fiscal year, a substantial 694,672 metric tons of crude oil entered the country through Chittagong Port, accounting for an import valuation of Tk8,603 crore. This contributed to Chittagong Custom House accruing revenue of Tk 1,130 crore. The FY 2022-23 witnessed a reduced import volume of 664,561 metric tons of crude oil, yet yielding a higher import value of Tk 9,672 crore.
Furthermore, the import of lubricating oil decreased by 12 per cent. The volume of this product imported during the financial year 2021-22 stood at 60,441 tonnes, corresponding to an import valuation of Tk 1,265 crore. However, in the subsequent fiscal year 2022-23, the import volume decreased to 53,381 tonnes, yet the import value saw a slight increase, reaching Tk 1,392.
Coal imports have surged significantly compared to the fiscal year 2021-22, displaying an impressive year-on-year growth of 45 per cent. In the preceding financial year, the country imported 2,914,665 tonnes of coal, contributing to an import valuation of Tk 3,174 crore.
However, the picture changed dramatically in the subsequent FY 2022-23, with coal imports soaring to 4,226,154 metric tons, resulting in an import value of Tk 6,623 crore.
Speaking to the Business Post, Chattogram Custom House Commissioner Md Faizar Rahman, said, “Leading the pack in revenue generation are products stemming from the energy sector. Once again, diesel has claimed the top spot in contributing the most significant share of revenue this year. Following closely, furnace oil secures the second-highest position in revenue collection.
However, it's worth noting that the import volume of this particular product has decreased compared to the previous financial year.”
He added, “In addition to this, substantial revenue streams also flow in from various other energy sources. Importing these high-volume products continues to serve as a lucrative avenue, outperforming other items in terms of revenue generation.”
