Government Approves Diesel Import

The government has approved the purchase of 300,000 metric tonnes of diesel in a move aimed at strengthening national fuel reserves amid heightened geopolitical tensions in the Middle East and a corresponding rise in global energy market uncertainty.

The decision was taken during the 29th meeting of the Economic Affairs Cabinet Committee for the 2025–26 fiscal year, along with the sixth session of 2026, held virtually on Thursday via Zoom. The meeting was chaired by the convener of the committee and Minister for Finance and Planning, Amir Khosru Mahmud Chowdhury.

According to an official statement from the Ministry of Finance, the approval was granted under emergency provisions to ensure uninterrupted fuel supply for electricity generation, transport, and industrial consumption. The government cited volatile international conditions, including ongoing conflict dynamics involving Iran and the United States–Israel axis, as key factors necessitating the accelerated procurement.

The purchase will be executed through direct procurement methods under international sourcing arrangements, based on proposals submitted by the Energy and Mineral Resources Division.

Under the approved plan, the diesel will be supplied by two international trading entities. AP Energy Investments Limited will supply 100,000 metric tonnes of diesel with a sulphur content specification of 10 parts per million (ppm), commonly referred to as IN-590 grade fuel. The remaining 200,000 metric tonnes will be procured from Superstar International (Group) Limited, supplying Euro-5 compliant diesel with similar low-sulphur specifications.

Officials noted that the procurement strategy prioritises both fuel quality and supply security, ensuring compliance with environmental standards while addressing immediate domestic demand pressures. The decision also reflects a broader policy shift towards securing diversified import channels to mitigate risks associated with supply chain disruptions in the global oil market.

Diesel Procurement Breakdown

Energy sector analysts suggest that such large-scale procurement is typically aligned with strategic reserve management and seasonal demand forecasting, particularly ahead of periods of elevated electricity consumption. The government is also expected to closely monitor global crude oil price movements in the coming months to optimise procurement timing and cost efficiency.

Officials further indicated that ensuring uninterrupted diesel availability remains a national priority, particularly for power plants and transport networks that are highly dependent on imported refined fuels. The approval underscores the administration’s efforts to maintain stability in the domestic energy supply chain amid external uncertainties.