Illegal oil depots in Sitakunda: An environmental sore

Local authorities have spotted about 65 illegally operating oil depots linked to the shipbreaking industry in Sitakunda, Chattogram.

These depots have been storing and marketing furnace oil from the ship-breaking industries without licences for nearly two decades, posing a severe threat to the environment and causing revenue losses to the government.

The illegal operations came out during recent raids on two oil depots by the upazila administration, on the basis of information from the National Security Intelligence (NSI).

Assistant Commissioner (Lands) and Executive Magistrate Alauddin led the raid, accompanied by NSI and Department of Environment representatives.

The raid revealed that the depots had no licence for explosives, fire safety, environmental clearance, or trade from local authorities, including the Petroleum Corporation, Department of Explosives, and Fire Service and Civil Defence.

Industry insiders reveal that each scrap ship typically contains between 200 and 2,000 tonnes of furnace oil. These illegal depots purchase 1.5 to 3 lakh tonnes of oil annually from the industry, which they then supply to local industries and brick kilns.

During the raid on the two oil depots, workers were found processing furnace oil, using silo machines, and loading it onto oil tankers for marketing. Approximately 1.8 lakh litres of furnace oil were discovered in the two depots.

The additional 65 oil depots in Sitakunda are evading an estimated Tk11.05 lakh in government revenue annually due to non-payment of licence fees and other taxes.

Over the past 20 years, the government has lost substantial revenue because these depots failed to obtain the required licences.

Additionally, these depots are causing widespread environmental and noise pollution. During the rainy season, furnace oil from the depots contaminates ponds, canals, and drains, polluting the environment and harming biodiversity.

The use of untreated furnace oil in factories, vehicles, brick kilns, and engine-powered boats further exacerbates environmental and water pollution.

Moreover, these depots lack fire safety and adequate security measures. Most are located near residential areas and multi-storey buildings, which increases the risk of fire hazards.

Environmentalist Muhammad Edris Ali highlighted the fact that oil spillage harms soil fertility, aquatic life, and biodiversity. He urged strict environmental compliance to prevent further degradation.

Chattogram Fire Service and Civil Defence Assistant Director MD Abdul Malek stressed the flammability of furnace oil and the necessity for fire safety measures and licences. He held out the assurance that depots in Sitakunda would soon comply with fire safety regulations.

At a meeting after the raid, AC Alauddin ordered the depots to obtain all necessary licences within the next 15 days or face legal action. 

Belal Uddin, president of Sitakunda Oil Businessmen Association and Sonaichhari union Awami League, acknowledged the lack of licences among depot owners. 

He also mentioned plans to relocate depots from residential areas. 

Ferdaus Anwar, deputy director of Department of Environment (DoE), Chattogram District, told The Business Standard that a number of oil depots had applied for the clearance certificates and we forwarded the applications to the headquarters. 

“But the officials at headquarters replied that the depots do not need clearance certificates as these are not processing units. They only store and supply furnace oil,” he added. 

He, however, admitted that the depots in Sitakunda sometimes pollute the environment by spilling oil and the DoE has the authority to take action against them under Environment Protection Act. 

“We will look into the matter soon”, he assured.