Government Explores Alternative Fuel Import Sources

Amid growing concerns over fuel shortages, the government is actively seeking alternative sources for petroleum imports in March to ensure uninterrupted domestic supply. Each tanker is estimated to carry between 25,000 and 30,000 tonnes of fuel, with a total of sixteen shipments planned for the month. However, ongoing geopolitical tensions and regional conflicts pose a risk of delays, prompting authorities to explore supplementary imports outside existing contracts, including additional supplies from India.

An official from the Ministry of Power, Energy, and Mineral Resources noted that contracted supplies of refined fuel remain secure until June. Yet, difficulties in the import of unpaid crude oil could potentially disrupt deliveries in May. To mitigate this risk, the government is considering extra procurement through government-to-government agreements, open tenders, or direct purchase arrangements.

The Bangladesh Petroleum Corporation (BPC) typically imports fuel through an average of fifteen tankers per month. Despite plans for sixteen shipments in March, conflict-related delays have already affected the schedule.

March Fuel Shipments Schedule

Approximately 20% of global fuel transport passes through the Strait of Hormuz. Following the outbreak of regional conflict, Iran temporarily closed the passage, allowing only a limited number of tankers daily. The Bangladeshi government has formally requested safe passage, and Iran has assured uninterrupted transit.

In response to panic-induced demand, supply at filling stations has been reduced by 25%, with strict rationing imposed for motorcycles and cars. Slight increases in allocation may be granted for diplomatic and essential vehicles.

State Minister for Power, Energy, and Mineral Resources, Anindya Islam Amit, stated that fuel supply for March remains stable. Nonetheless, preparations are underway to secure alternative sources for April and May, with potential imports being considered from Africa, the United States, and India.

Fuel Imports from India

The Middle East conflict has increased transport costs. Pipeline delivery from India costs approximately $5.50 per barrel, whereas maritime transport ranges from $45 to $76 per barrel. The BPC is currently evaluating all proposals, considering supply capacity, quality, and price to select the optimal source.

Energy experts emphasise that securing alternative sources is now critical for national energy security. While cost efficiency is desirable, procuring low-quality fuel is inadvisable. Expanding supply through India could reduce overall costs while maintaining quality standards.