The newly formulated policy for private refineries in Bangladesh, allowing private-sector entry into crude oil processing, poses challenges for existing refiners. The policy mandates a production capacity of 15 lakh tonnes per annum, potentially pressuring current private refiners. Despite aiming to boost domestic energy capacity and generate employment, industry insiders argue that the requirement will impose financial strain. The policy sets criteria for private entrepreneurs, including a minimum annual turnover and compliance with safety and environmental standards. Concerns arise about the government’s control of quality and the impact on existing refiners’ viability. The private sector currently fulfills around 80% of octane and petrol demand but only about 10% of diesel demand, prompting questions about future demand projections amidst the rise of electric vehicles.
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