India Oil Corp, the country's top refiner, is close to winning its first contract to supply diesel, jet fuel and petrol in the second half of this year to state-run Bangladesh Petroleum Corp, two sources with knowledge of the matter said.

IOC mostly stays away from participating in the term tenders for fuel exports as the refiner sells most of its fuel in the local market, besides supplying its retail outlets in Nepal and Bhutan. “Now (the) scenario is different, demand is falling so IOC will have some spare products to export,” said one of the sources.

BPC had sought bids for imports of 8,70,000 tonnes of petrol with sulphur content of no more than 500 parts per million (ppm), 1,20,000 tonnes of jet fuel, 20,000 tonnes of 180-centistoke high sulphur fuel oil and 30,000 tonnes of 95-octane petrol in a tender issued this month.

IOC emerged as a lowest bidder for supply of up to 4,30,000 tonnes of diesel and 50,000 tonnes of jet fuel during July-December and 30,000 tonnes of gasoline through two equal size parcels in August and November, the two sources said.

Seven companies took part in the tender. For the first time, Indian Oil Corp and Puma Holding participated in the tender, a source at BPC said.

Other participants were Petrochina, China's Unipec, Emirates National Oil Co, Thailand's PTT, and trader Vitol, the source added.

Indian Oil Corp placed premiums to Middle East quotes of $2.60 a barrel for diesel and $4.48 for gasoline 95, the two sources said.

IOC did not respond to a Reuters email seeking comment. “Currently we are evaluating their offers. After verifying all details, we will send the proposal for the Board's approval,” Abu Hanif, senior general manager (commercial & operation) at BPC said, without elaborating.

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