Government gestures good news on fuel supply
The government has announced major good news for the country's people regarding fuel supply. Despite ongoing geopolitical tensions in the Middle East and volatility in the global energy market, it has taken a significant step to ensure the nation's energy security. To meet domestic demand and keep economic activities running smoothly, the government has decided to import an additional 500,000 metric tons of fuel.
Under the new decision, Bangladesh will import 390,000 metric tons of diesel (gas oil) and 90,000 metric tons of jet fuel (aviation fuel). The fuel will be supplied by Singapore-based Unipec Singapore Pte. Ltd. The total cost of the import has been estimated at approximately Tk 76.73 billion.
According to officials from the Energy and Mineral Resources Division, the Bangladesh Petroleum Corporation (BPC) is carrying out the procurement through an international open tender. The proposal has recently received policy approval from the Cabinet Committee on Government Purchase.
Joint Secretary of the Energy and Mineral Resources Division Monir Hossain Chowdhury told the media that the import proposal has been approved to meet fuel demand for the three-month period from June to August. The administrative clearance has already been sent to BPC, and the process of issuing the Notification of Award (NOA) to the selected supplier is currently underway. Fuel deliveries are expected to begin shortly thereafter.
BPC officials said the government's current objective is to maintain a 90-day strategic fuel reserve in the country. Bangladesh currently has fuel stocks sufficient for approximately 60 days. Owing to instability in the Middle East and security concerns surrounding the Strait of Hormuz, global oil prices and shipping costs have risen. Nevertheless, to ensure uninterrupted supplies for agriculture, industry, and air transport, the government has taken this proactive measure.
According to BPC's proposal, the renewed crisis in the Middle East since the beginning of 2026 has driven global diesel prices to record levels. The current market situation is described as even more complex than during the 2022 Russia–Ukraine war. In addition to higher oil prices, increased insurance risk premiums and the need to use longer alternative shipping routes have significantly raised transit costs. However, BPC considers the agreed procurement price to be reasonable based on competitive international bidding.
The Energy Division has assured that there is currently no shortage of fuel in the country. Despite foreign exchange constraints, the opening of letters of credit (LCs) for fuel imports is being given the highest priority, ensuring that no disruption in the supply chain is anticipated. The government also said that the automatic fuel pricing mechanism, which aligns domestic prices with global market trends, will continue to remain in effect.
Source: Bangladesh Sangbad Sangstha (BSS)