Doorstep fuel delivery plan is fraught with risk

The government has approved a guideline, allowing suppliers to deliver fuel oils to the doorsteps of consumers after receiving orders online, a move that raises concerns since carrying flammable items in such a manner poses risks.

Thanks to the initiative, people will receive petrol, octane, diesel, and lubricant items by ordering them through mobile apps like the way they purchase groceries and other necessary items.

It will take some time to translate the plan into reality since the government has just initiated the process of appointing suppliers or distributors, according to the guideline published on January 3.

Energy experts and petrol pump owners, however, expressed concerns since such a home delivery poses a high risk of explosion and many countries have banned the transportation of fuel oil in jerry cans.

The initiative comes two months after the government allowed the private sector, for the first time, to import, store, distribute and sell fuels. So far, state-run Bangladesh Petroleum Corporation (BPC) has been the sole importer of fuel oil.

According to the guideline, consumers must register to receive the home delivery and suppliers will be allowed to deliver the products in jerry cans that can hold 15 to 25 litres of fuel.

The fuels can't be carried in plastic or steel-made drums.

Companies will require approval from the BPC through one of the three state-owned oil distributors -- Padma, Meghna and Jamuna -- to act as suppliers.

After securing the nod, suppliers will get six months to go into commercial operation.

"As of Tuesday, none applied for registration. We hope it will be popular gradually," said Anupam Barua, director for marketing at BPC.

He said the move aims at bringing the fuels to the doorsteps of consumers at the same prices as with refuelling stations. An additional service charge will, however, be applicable.

The service charge will be Tk 1-2 per litre, the guideline said.

Barua claims the home delivery system exists in many countries. "After the service begins, industries and commercial buildings will be more beneficial as they need fuels at a higher volume."

Initially, consumers in city corporation areas will qualify for the home delivery. Residential and commercial buildings, shopping malls, government establishments, and industries using generators as well as vehicles in those areas will be allowed as consumers.

Barua said information about consumers will be scrutinised since there are chances of misusing the facility. "The state-run distributors will monitor this."

When asked about the risk linked to the transportation of fuel oil in jerry cans, the official said suppliers would sell the fuel in containers to end consumers. But the fuels will be transported in large vehicles.

"Security will be ensured."

In order to receive a home delivery licence, a company must have Tk 3 crore as annual turnover for the three consecutive years. Those registered with the Registrar of Joint Stock Companies and Firms will have to have at least Tk 10 lakh in paid-up capital.

Suppliers will have to collect fuels from depots in bouchers with a storage capacity of 18,000 litres and deliver them in tank-lorries with a capacity of 2,000 litres to 6,000 litres.

Only member companies of the Federation of Bangladesh Chambers of Commerce and Industry, the E-commerce Association of Bangladesh, and the Bangladesh Association of Software and Information Services will be permitted to become suppliers.

Mohammad Nazmul Haque, president of the Bangladesh Petroleum Dealers, Distributors Agents and Petrol Pump Owners Association, said the guideline will only pave the way for large companies to enter the business.

"We had earlier applied for it, but the authorities refused to give the permission, saying transportation of fuels in such manner is risky," he told The Daily Star.

Before announcing the guideline, the government didn't discuss it with stakeholders, he claimed.

Mohammad Tamim, a professor at the petroleum and mineral resources engineering department of the Bangladesh University of Engineering and Technology, described the home delivery move as absurd and nonsense.

"In many countries, transportation of fuels in jerry cans is banned as it carries risks."

"How could the government decide to deliver such flammable items in jerry cans?"

He also questioned whether the government has carried out any feasibility study to find out the demand for such a service. "I think it is unnecessary."

If factories need, there could be a home delivery system and the fuels should be supplied through lorries, not jerry cans, he added.

Energy Secretary Nurul Alam declined to comment over the phone.

Jakaria Jalal, head of strategy and planning at Bashundhara LP Gas Ltd, said the government's decision will only legitimise the illegal fuel business.

He said the government banned the sales of fuels in takeaway containers or to industries and commercial buildings without prior approval amid countrywide arson attacks.

"But now the situation has improved and the government may think about it in line with its Smart Bangladesh vision. But it has no major business prospect."

In contrast, allowing the private sector to import fuels will be a game-changer, said Jalal.