The Oil Mystery Still Remains the Same

There have been some new setbacks in the International Oil & Gas Market”. The market economy in respect of oil & gas has never been drowned this much in last 20 years of time in the international market. Certainly some certain political propaganda between Russia & USA caused the situation. But the goose is still not out from the hole and no other country will want to do the mole hunt for our country.

From the beginning, we are not a developed country but its been spread out that we’re a developing country. What developing countries do? Take advantage of the summer sale without any doubt. But this time the international oil market is providing with an 20 year sale discount which the market didn’t imagine to provide ever. We are small people with small minds. We don’t have to think what USA or Russia will do with their fuel propositions in between. We can be shortsighted for some moments.

This market drowned in October 2014 and till now it doesn’t seem that stable to get to a normal price till this year end. Well isn’t it good for us to pay a little bit less for the fuel at least for a year? Or it will affect the economy so hard which I believe it won’t.

I am talking purchasing of fuel not utilizing our own fuel cause it costs too much for us. On the contrary, there is a big question which might strike to some categorical people in the infrastructure with this issue but only reasoning won’t be a big fact at all.

We’re drilling and mining our own fuel, refining fuel by our own refineries owned by government and we buy very few quantity compared to international fuel exchanges in developed countries which is almost 7 million Barrels of Crude now every year. Certainly its increasing but due to be in a position to analyze the market it is quite hard for me to give a bill for octane per liter in the petroleum pumps for 98-100BDT. Even in some places, its more. Same goes for Diesel, LNG and LPG as well.  

When government is drilling and mining own fuel and refining with own refineries and almost every year is raising the price of fuel due to the fact of increased price in the international market and with increased labor cost, isn’t it good to purchase the complete required fuel quantity from international market which is ensured to provide us a very low fuel price for long time.

It is a common equation, if I can get the same product in less price it is more than just good but it seems to hurt the royal families of the people of this country because it doesn’t strike them as a big fact in their day to day life.

We all know that nowadays people counts every penny before spending but why not in this arena?

It is an outpoint where blaming the government is not good enough at the current political stage but an advise might work just simple to purchase the fuel from international market because if we can do that, we can get octane for 60BDT and Diesel by 40BDT.

Certainly compared to local market, the current international fuel market can provide us with such less price and if government takes a step into it, more discount will come in action either from Russia or Middle East.

Is it wise to get the fuel from own market with such a high price still? I don’t think so. But what are the odds? Not less but much big.

Not only for retail purpose but for industrial arena, it can turn the economy in each and every sector at least by 10-20% because everything is depended on power and energy. If it costs less, the more we get.

                                     

From the first point of view, being short sighted for an year can bring us a lot of fortune for the country. And we should do so, shouldn’t we? I know the small writing would never be the bottom line for the country’s economic decision but I don’t think it is worth raise the oil price every year by showing loss of government for purchasing fuel in higher price for the Royal International Fuel Market and from the beginning I have outpointed the alternative of pulling up a debate of giving high price for using our own resources which is supposed to cost less. So if we can get less price from international market, why should we go for local production with higher price the a poker face of a Royal Country? I know it is a big debate but thought it would worth showing to general public like us.

I would request the general and educated people of this country to take an eye on this issue and give some simple thoughts about some changes because it is certain that government got the complete picture that what they can do to this country by developing the economy with a single propaganda of a 20 year sale price.

I still believe in this country and the knowledgeable people in the infrastructure. I hope and wish that they would put a graph and mark on the bottom lines based on the higher curves as if in a year, the economy can be changed by 20-30% from industrial sector only by providing more power to them, what they can do in next 5-10 years. Because in a certain level all the people in this country never want to recall us developing but developed completely because sometimes, short sights can bring long term fortune and it’s a rare issue.  

Below is just a figure where MGO as Diesel shows the international Market price on CIF Basis to Rotterdam or any other safe ports in the world and also the graph which shows the position of our country where the price is quite drowned. 

The Crude oil price shown here never drowned less than $85 in last 7 years at least and I think its more than just to count on the complete figure based on this figure.