Fuel Imports Lag Amid Middle East Conflict

Bangladesh faces a critical shortfall in fuel imports as ongoing conflict in the Middle East disrupts supply chains. Despite proactive planning by the Bangladesh Petroleum Corporation (BPC), only a quarter of the nation’s fuel demand has been secured for March.

Since the outbreak of hostilities, 25 oil and gas tankers have docked at Chattogram Port, with five more awaiting arrival in the pipeline. Even if these vessels reach port within the next five days, March’s imports are expected to cover only half of the country’s requirement. Although alternative sources and existing reserves may partially bridge the gap for March, concern is rising over potential shortages in April and May.

Current March Supply Status

Originally, 17 vessels carrying diesel and furnace oil were scheduled to arrive this month. So far, only eight ships have arrived, delivering a total of 200,000 tonnes of fuel. An additional 51,000 tonnes of diesel on three vessels remain in the pipeline, while six other shipments, carrying 150,000 tonnes, are uncertain. LPG imports show a similar trend: five out of nine scheduled vessels have arrived, leaving approximately 250,000 tonnes in limbo.

Plans to Mitigate the Shortfall

To alleviate the shortfall, BPC has drafted a preliminary import schedule for April, targeting:

• 14 vessels and three pipeline parcels bringing a total of 300,000 tonnes of diesel, 50,000 tonnes of jet fuel, 25,000 tonnes of octane, and 50,000 tonnes of furnace oil.
• So far, confirmation has been received for 110,000 tonnes by ship and 20,000 tonnes via pipeline, meeting only a quarter of April’s projected demand.

Alternative sources are being pursued for LNG and LPG. With Middle Eastern routes blocked, one LPG shipment is being sourced from Malaysia, and one LNG shipment purchased from Indonesia at a higher cost. If these vessels arrive within five days, March’s immediate fuel requirements can be covered, and existing reserves could sustain demand until mid-April. Without timely arrivals, shortages are likely to worsen in late April and May.

Supply Disruptions

BPC’s major suppliers, China’s Unipec and Malaysia’s Petco Trading, report delays due to the conflict. A 100,000-tonne crude oil shipment from Saudi Arabia’s Ras Tanura terminal, scheduled for 3 March, remains blocked in the Strait of Hormuz, and a chartered vessel from Abu Dhabi National Oil Company (ADNOC) has been cancelled. Similarly, four LNG vessels booked from the Middle East cannot pass through the strait, further limiting supplies.

BPC’s General Manager, Muhammad Morshed Hossain, confirmed that small volumes of crude and diesel have been procured via pipeline from India, but the larger challenge of crude oil shortages remains. Local representatives also confirmed that alternative sources are being mobilised, with one LNG vessel from Indonesia and one LPG vessel from Malaysia expected to arrive soon.

Bangladesh annually imports 6.5–6.8 million tonnes of petroleum products, of which 15 lakh tonnes are crude oil primarily from Saudi Arabia and the UAE. The conflict has disrupted this critical supply chain, leaving the nation’s energy security under strain.