The government is set to reduce high-sulfur fuel oil (HSFO) imports by 20% in October as the nation shifts its power generation sources to coal and experiences cooler temperatures. According to the President of the Bangladesh Independent Power Producers’ Association, the country is expected to import approximately 200,000 tonnes of 180 CST HSFO with 3.5% sulfur content, down from 250,000 tonnes in September 2023.
The October 2023 import volume is projected to be less than half of what it was in October 2022 when Bangladesh imported around 450,000 tonnes of HSFO. The reduction in HSFO imports has been attributed to the opening of new coal-fired power plants, reducing the country’s reliance on HSFO for electricity generation. This change has also led to the accumulation of unpaid government dues to HSFO-based power plant operators, prompting some HSFO importers to reduce or halt their imports.
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