Diesel Quality and sulfur content Report

Diesel Quality and sulfur content

       Bangladesh currently consumes about 23, 00,000 metric tons of diesel annually. 30% of the diesel consumed for irrigation and remaining is mostly as transport fuel. The Bnagladesh Standards and Testing Institute decides specification for diesel and the Bangladesh Petroleum Corporation is the sole importer of petroleum products other than lubricants. The current level of sulfur content in diesel is 2500-ppm and the government does not have any immediate plan to reduce diesel sulfur to 500-ppm because of the price differential between 2500-ppm and 500-ppm sulfur diesel.

      Bangladesh currently does not have any auto fuel policy. In other countries, there is a plan for the improvement of auto fuel over a period of time that enables manufacturer of automobiles, importers and all other stakeholders to prepare for any change. Lack of any auto fuel policy makes it difficult to regulate contents in fuels.  In case of introduction of low sulfur diesel, infrastructure is also a great problem. In case of introduction of low sulfur fuel, there will be a severe dearth of infrastructure in storage and marketing. To overcome this dearth of infrastructure, a huge investment will be need. Mobilizing financial resources for the purpose is a huge task for the GoB.

 Diesel Adulteration

       Earlier on adulteration of diesel with kerosene was rampant. But by reducing price difference between these 2 products and also by dyeing the kerosene it could be reduced substantially.

 Quality of Lubricants

       Unlike other petroleum products, private sector can import lubricants. Bangladesh imports about 80,000 MT of lubricants annually by public and private sector companies. There is allegation of adulteration in lubricants.  Government notifies specifications for lubricants but enforcement is lacking in case of adulteration.

 Use of Alternative Fuels

       The most viable and abundantly available automobile alternative fuel in Bangladesh is the CNG. The introduction of CNG is a success story for Bangladesh. It started in 1983 through a World Bank under pilot project with setting up of 4 CNG stations in Dhaka. Later on private sector was also involved in expansion of CNG and proved to be highly successful. Current statistics on CNG filling stations, conversion workshops and number of converted vehicles are as follows.

Table-2

(As on November 2006)

Sl	Item	Nos/Amount	Location/Type
01	CNG Filling Stations in operation	136	Dhaka-85
02	CNG Filling Stations to come to operation by January, 2007	14	Dhaka-04
03	CNG Conversion Workshops	87	Dhaka-52
04	CNG-converted vehicles	60,557	Dhaka-50, 664
05	CNG Vehicles in Bangladesh	99,004
06	CNG Filling Stations established on government land	29
07	CNG Filling Stations established in existing Petrol Filling Stations	40
08	Amount of natural gas used as CNG	23.00 mmcm

It may be mentioned here that CNG has also been expanding in other cities outside Dhaka and it got a tremendous boost after the recent global fuel price hike.

       In order to popularize CNG use as auto fuel government is following the policy to keep a huge price difference with petrol and diesel. Currently CNG price is Taka 8.50 per m³ while price of octane Taka 54.75 per liter, petrol is Taka 52.83 per liter and diesel is Taka 30.96 per liter. So, diesel is 4 times, while octane and petrol are about 7 and 6.5 times respectively costlier than CNG. The reason and rationale for following such a policy is quite clear.

·         First, to save valuable foreign currency in importing of petroleum products, and;

·         Second, to address the problem of air pollution.

      But the government should make some appropriate amendments in the Motor Vehicle Ordinace 1983 to give a sound legal basis by clearing recognizing CNG as an auto fuel and conversion to CNG a legal thing. The Government in a notification in 1 March 2005 under The Explosive Act, 1884 has made codes for CNG conversion kits and fitting procedure and scrutinizes the imported of the items at the time of import. In India, under the relevant Act rules for CNG kits, accessories and their testing had been formulated. But comprehensive rules yet to be formulated on CNG kits, accessories and their testing. In case of Bangladesh, the CNG codes on motor vehicle conversion and conversion kits as prescribed in the CNG Rules 2005 have to be incorporated in the Motor Vehicle Ordinance 1983. This is necessary to enforce the codes while carrying out fitness inspections of CNG vehicles that are paramount for ensuring vehicle safely using CNG.

       So far, CNG technology (filling station, cylinder, conversion kits etc.) has entered into the market of Bangladesh from various countries like New Zealand, Brazil, Italy, South Korea and India. But CNG buses are being imported from mainly from 2 countries-China and India. As is apparent from the present market scenario, the operators of CNG vehicles have opted for new CNG vehicles rather than spending money on the conversion of the diesel vehicles to CNG. From the view point of both safety and emission control this is definitely the better option.

 New and in-use emission standards & Inspections

       Bangladesh has formulated emission standards for vehicles under the Environment Conservation Rules 1997. The new standard has been notified in 2005. But at present there exists no equipped laboratory to test new vehicles for their compliance of standards. So there is a need for establishing such a laboratory. Moreover, roadside checking of emission standards can be apart of an audit program to check the emission profiles of vehicles and create awareness. To have the in-use emission standard enforced, it is necessary to make it a part of the annual fitness test of a vehicle. In India, the emission standards for both new and in-use vehicles have been made part of relevant Ordinance and Rules to make it mandatory to meet new and in-use emission standards to in order to obtain both registration and fitness certificate. Unless, the same is done in case of Bangladesh, enforcement of the in-use emission standards will not take place.