Singapore-based oil distribution company Innoco Oil Pte Ltd is going to supply 75,000 tonnes of low sulphur fuel or marine fuel to the Bangladesh Petroleum Corporation (BPC) for the next six months.
Innoco has received the order by submitting the lowest rate of supply cost of the petroleum product among four other bidders – including Vitol and Petro China.
The company will get $37 in fare for carrying each tonne of low sulphur furnace oil, said a source at the BPC.
Currently, the price of low sulphur fuel is around $312 per tonne.
The state-owned BPC has initiated to import the low sulphur furnace oil having less than 0.5 percent sulphur content complying with the International Maritime Organisation (IMO) guideline.
In its 2019 guideline, IMO – the United Nations agency with responsibility for the safety and security of shipping and the prevention of marine and atmospheric pollution – recommended banning ships from using fuels containing more than 0.5 percent sulphur to reduce marine pollution.
Before the new guideline, ships all over the world including 35 in Bangladesh used furnace oil having 3.5 percent sulphur content.
Ninety-five percent of shipping companies worldwide have switched over to low sulphur fuel to comply with the environment-friendly recommendation.
To comply with the new IMO regulation, the BPC floated the international tender inviting international quotation for import of the petroleum on June 25.