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Country to have fuel surplus by '95

By Shahner Khan
Bangladesh Is to have an annual surplus of over three and a half lakh barrels of petrol by the year 1995 tf the rate of consumption remains the
The petrol produced by the dtescl producing plants at the Eastern Refinery tn Chittagong and the Increased production of condensate (a liquid fuel mixed with gas) from the country s gas fields would result In the estimated surplus.
Of the total 70 to 80 lakh barrels of imported crude oil. Eastern Refinery processes 15 lakh barrels of diesel, about seven lakh barrels of petrol and various quantities of other by-product fuels. The petrol processed at the refinery is almost capable to meet the country's present demand
According to official sources, this surplus petrol will be produced from the gas fields of Kailastila and Biani-bazar which have high contents of condensate. But this surplus was too little for exports. the sources said.
Apart from an annual import of different types of fuels worth about Taka 1000 crore, the various gas fields of the country produce about 85.000 barrels of petrol each year.
In this situation, the government Is on principle following a policy to encourage petrol consuming vehicles and machinery to use up the sur-
plus petrol which would otherwise be wasted, official sources said
Planners advised the government to reduce taxation on petrol engine vehicles and machines for the next few years. They also advised the government to reduce the price of petrol by a small margin relative to the price of diesel.
Presently the demand for diesel is more than that for petrol. Other than the diesel processed at the refinery, about 45 lakh barrels are imported annually
Encouragement of petrol consumption will not Immediately alm to put pressure on the use of diesel tn the light that 60 per cent of the country s present transports run on diesel. The agriculture sector consumes about 25 per cent and other sectors including the power sector consume the rest.
The sources said, ultimately measures to reduce dependency on diesel will be chalked out. Planners advised the government to raise tax on diesel engines by the year 1995. While diesel use may not become obsolete within the next 10 years, the planners arc thinking of ways not to Increase diesel dependence any further.
But the government is yet to take measures encouraging consumption of petrol.