The government has initiated an emergency plan to import additional refined fuel worth about 204.6 billion taka in an effort to protect the country’s energy supply amid growing geopolitical instability in the Middle East. Officials say the proposed purchase includes large quantities of diesel and octane to ensure adequate fuel reserves for the coming months.
Sources within the energy sector indicate that the Ministry of Power, Energy and Mineral Resources has already forwarded a proposal to the Cabinet Committee on Government Purchase seeking approval for the direct procurement. The fuel is expected to be sourced from PetroGas International Corporation, a Dubai-based energy supplier associated with the Saudi royal family and active in fuel trading across the Gulf region and Europe.
Bangladesh remains heavily dependent on imported petroleum to meet domestic demand. The state-owned Bangladesh Petroleum Corporation manages most of the country’s fuel imports. Typically, half of the imported fuel is secured through government-to-government agreements, while the remaining portion is purchased through international open tenders.
Under the existing supply framework, crude oil is imported mainly from Saudi Arabia and the United Arab Emirates. Saudi Aramco supplies Arabian Light crude, while the Abu Dhabi National Oil Company provides Murban crude. These crude oils are processed at Eastern Refinery, the country’s only state-run refinery facility. However, a substantial share of refined fuel such as diesel and octane must also be imported directly to meet growing consumption in the transport, agriculture and industrial sectors.
Recent geopolitical developments have intensified concerns over the stability of global oil supplies. According to the official summary attached to the procurement proposal, tensions escalated on 28 February 2026 following military strikes involving the United States and Israel in the Middle East. Iran subsequently announced restrictions on oil tanker movement through the Strait of Hormuz beginning on 1 March, raising fears of disruptions to one of the world’s most important energy shipping routes.
The uncertainty has already affected Bangladesh’s fuel procurement schedule. In March, Bangladesh Petroleum Corporation opened seventeen letters of credit to import refined fuel. So far, only four shipments have reached the country, while six vessels are expected to arrive soon. The delivery status of seven consignments remains unclear. For April, fifteen letters of credit have been issued, and although suppliers initially expressed willingness to provide thirteen cargoes, only three shipments have been firmly confirmed.
Facing these uncertainties, the corporation began searching for additional suppliers outside the existing procurement arrangements. On 6 March officials approached PetroGas International Corporation and requested a price quotation for immediate supply. The company submitted its formal proposal on 9 March.
According to the offer, the fuel price will be determined based on the Platts Arab Gulf benchmark published on the loading date, with a premium of three United States dollars per barrel added to the benchmark price. Bangladesh Petroleum Corporation formed a technical and financial evaluation committee to review the proposal. The committee confirmed that the proposed diesel meets the national quality requirement, including a sulphur limit of fifty parts per million.
Planned Fuel Import Details
| Fuel Type | Quantity | Estimated Cost (USD) | Estimated Cost (BDT) |
|---|---|---|---|
| Diesel | 100,000 tonnes | 135.8 million | 166.6 billion |
| Octane | 25,000 tonnes | 30.99 million | 38.02 billion |
| Total | 125,000 tonnes | 166.79 million | 204.6 billion |
Officials noted that the offered premium appears comparatively favourable when measured against earlier purchases. Previous international tenders for diesel recorded premiums between 4.72 and 4.78 dollars per barrel. In government-to-government negotiations, the lowest premium previously obtained was 5.33 dollars per barrel. Premiums for octane have historically reached around 6.80 dollars per barrel.
Given the relatively lower premium proposed in the current offer, the board of Bangladesh Petroleum Corporation approved the emergency procurement plan during its meeting on 11 March. The proposal is now awaiting final approval from the Cabinet Committee on Government Purchase before the transaction can proceed.