Now diesel ‘disappears’ at Padma, Meghna companies, 150,000 litres missing

Following the discovery of diesel shortages at Jamuna Oil Company Limited, approximately 150,000 litres of diesel have now reportedly ‘disappeared’ at Padma and Meghna oil companies.

After being supplied via pipeline from Chattogram, the diesel quantity decreases upon reaching these companies’ Godnail depots in Narayanganj. Authorities are now examining whether there is any fault in the storage tank or the meters connected to the pipeline.

State-owned Bangladesh Petroleum Corporation (BPC) is the lone entity for importing and supplying fuel oil. Under BPC, Padma, Meghna, and Jamuna companies sell oil in the market through distributors. This information about the diesel shortage has been obtained from sources at BPC.

BPC sources said that meters are installed at both ends of the pipeline in Chattogram and Dhaka (Narayanganj). Additionally, the amount of oil in the depot tanks is measured through a private survey company appointed by BPC in the presence of officials from the oil companies and the pipeline company.

People associated with the depot say that fuel oil is measured in the depot through traditional methods. A rod (dip stick) is primarily used to measure the depth of the tank. Even if this depth shows two millimetres less, up to 1,180 litres of oil can be stolen. Earlier, the oil quantity appeared lower during tank depth measurements at two depots of Jamuna Oil Company Limited in Fatullah because the capacity had been overstated. The oil was actually inside the tank. Now, in the case of Padma and Meghna, the matter may become clear once the tank capacity is reverified.

Meanwhile, the government has constructed the Chattogram–Dhaka pipeline to prevent fuel theft and wastage with trial oil supply beginning in June this year. Diesel comes directly from the main terminal in Patenga, Chattogram to Fatullah and Godnail in Narayanganj.

Jamuna’s depot is at Fatullah, whereas Padma and Meghna depots are at Godnail. Depot-associated persons say that there is little opportunity for significant shortages during pipeline supply. However, slight variations may occur due to temperature changes.

BPC sources said that diesel arrived at Meghna’s depot via the pipeline on 10 November. Generally, fuel oil is measured assuming a temperature of 30 degrees Celsius. Accordingly, 2,537,724 litres of oil were supplied from Chattogram, but upon measurement at the depot only 2,422,473 litres were recorded, indicating a shortage of 115,251 litres, which amounts to a loss of more than 4.5 per cent. Although there should be no loss during pipeline transport, BPC allows up to 0.33 per cent loss during external transportation.

Regarding this, Md Shahirul Hasan, managing director of Meghna Petroleum Limited, told Prothom Alo that since oil is being supplied through the pipeline on a trial basis, the cause of the shortage cannot be confirmed. There may be faults in the meters at either ends or the tank capacity. Lower temperatures in winter may also increase oil density, which may cause shortages. These are being verified now.

BPC sources said that diesel was supplied to Padma depot on 11 November. From Chattogram, 2,520,770 litres of diesel were supplied, but upon measurement at the depot 2,493,468 litres were recorded, resulting in a shortage of 27,302 litres.

However, Mofizur Rahman, managing director of Padma Oil PLC, told Prothom Alo that according to meters at both ends of the pipeline, there is an excess of 1,800 litres of oil. Lower temperatures in winter reduce the measured quantity in the tank. Once regular oil supply begins via the pipeline, these discrepancies will be resolved.

BPC had initiated the Chattogram–Dhaka fuel oil pipeline project in 2016. The project deadline was 2020. However, after three extensions, the project was completed in March this year. The initial cost was estimated at Tk 28.61 billion (2,861 crore), which finally rose to approximately Tk 36.99 billion (3,699 crore). For pipeline operation, BPC formed a company named Petroleum Transmission Company (PTC) PLC.

BPC chairman Md Amin Ul Ahsan told Prothom Alo that the pipeline is still operated under the project. Once it is handed over to the concerned authorities, the marketing company will account for the oil using the meters at both ends.

Regarding this, project director Md Aminul Haque said that there is no chance of diesel disappearing in the pipeline. The diesel of Padma and Meghna is somewhere in the supply line. It will eventually be detected. Meters are being maintained. Once the meters are accurate, the capacities of the three companies’ tanks will also be verified. After these steps, handover of pipeline will happen, and that may take another two months.

In September, a shortage of oil was detected at Jamuna’s Fatullah depot. On 1 October, Prothom Alo published a report titled ‘Govt oil depot: 375,000 liters of diesel missing’. The report raised allegations of falsification of tank capacities.

To prove the allegations, an investigation committee was formed with representatives from Jamuna and the pipeline company. The committee reverified the capacities of two tanks at Fatullah depot, which increased combined capacity by 77,492 litres.

People concerned said this means the capacity was initially shown lower to facilitate theft.

The committee’s report submitted on 16 October noted that in Fatullah depot’s Tank No. 22, quantitative differences were observed between the new and old charts. Although the chart for Tank No. 23 was accurate, its actual capacity was found to be higher, and since the tank was newly built, it could not be compared with any previous chart.

Normally, capacity is verified when the tank is empty. Since tank was filled with oil, their, capacity could not be measured, so the strapping method was used. After verification, the maximum oil holding capacity of Tank No. 22 became 7,038,404 litres. Previously, it was shown as 6,972,217 litres, meaning an increase of 66,187 litres. Tank No. 23 was found to hold 5,059,282 litres after re-verification, previously 5,047,277 litres. Hence, capacity increased by 11,305 litres.

Apart from this, the investigation reports of the Energy and Mineral Resources Division and BPC regarding oil theft and irregularities at Jamuna have not yet been submitted.

Following media reports on fuel theft, the Energy Secretary held a meeting at BPC’s Dhaka office in November. The minutes of the meeting state that the BPC chairman mentioned that with the pipeline operational, an unscrupulous syndicate is attempting to create disorder in fuel supply.

The meeting decided that BPC’s oil marketing companies would conduct regular supervision and take administrative action against responsible persons to stop the dominance of labour union leaders. Additionally, a committee will be formed to examine technical, operational, and logistical issues and submit a report. The committee will also review published news and various fuel theft incidents to provide recommendations.

M Shamsul Alam, Energy Advisor of the consumer rights organisation Consumers Association of Bangladesh (CAB), told Prothom Alo that theft occurs from ships to petrol pumps, which is widely known. The pipeline was built to prevent such theft. Yet, how does oil disappear? Why were persons involved in reducing tank capacity not punished?

He further said, previously, theft occurred under political protection. But why is it happening now?

To prevent oil theft, an investigation committee must be formed with citizens who are free from conflict of interest or through the court, he added.