According to the agreement, it will ensure rapid penetration of liquefied petroleum gas (LPG) for use in automobiles across the country.
LPG is also known as auto-gas while is used in the motor vehicles.
As per the deal, Jamuna Oil and Bangladesh Petroleum Corporation will each receive a royalty of Tk 0.50 per liter of LPG that is sold by Beximco LPG through their established Auto LPG pumps.
Currently, Jamuna Oil has a network of 750 filling stations while Beximco LPG was granted 500 franchise licenses for Auto LPG stations and 25 licenses for Conversion Workshops by the ministry of energy and mineral resources earlier in 2016, said a press release of the Beximco.
The agreement was signed by Gias Uddin Ansary, managing director of Jamuna Oil and Mrinal Roy, chief executive officer of Beximco LPG.
Speaking at the ceremony, Mehedi Hasan, general manager, sales and marketing of Beximco LPG, said, “This agreement with Jamuna Oil Company will stand as a milestone for the rapid progress and development of the automotive fuel sector of the country.
He said Beximco LPG commits delivery of the best quality LPG mix of Propane and Butane to ensure that the fuel reaches the required Octane number and causes no damage to the engine of the vehicle.