Indian Oil Firm Halts Exports To Bangladesh Citing Security Concerns

Dhaka, Bangladesh (AHN) - India's state-run Bharat Petroleum Corporation Limited (BPCL) has suspended fuel shipments to neighboring Bangladesh citing unnamed security concerns.

In 2007, the form signed a deal with the state-run Bangladesh Petroleum Corporation (BPC) to export 10,000 tons of diesel a month from January through December, 2008. But after exporting only 3500 tons of the fuel by January the BPCL suspended shipments, according to a senior BPC official quoted by the Financial Express (FE) newspaper.

"We have sent a letter to the company urging it to make the supply as soon as possible as we are now facing difficulties to import from elsewhere. Their local agent also assured us that the problem would be solved shortly," Syed Mozammel Hoque, Director Operation of the BPC told FE.

Local agent of the BPCL Sheikh Mahfuz Hamid added that his company is trying to solve the problem.

The BPC imported 3.8 million tons of crude and refined oil including 2.5 million tons of diesel in 2007 from the Persian Gulf countries. The company also signed deal with several regional companies to import the petroleum products.