Government Plans Emergency Fuel Import

The government has moved to secure additional fuel supplies through a direct international purchase worth roughly £1.5 billion, as rising geopolitical tensions in the Middle East threaten global energy supply routes and price stability. Authorities have decided to import diesel and octane valued at approximately 204.6 billion taka in order to safeguard national energy security.

According to officials, the Ministry of Power, Energy and Mineral Resources recently submitted a proposal to the Cabinet Committee on Government Purchase seeking approval for the emergency procurement. The fuel is expected to be supplied by PetroGas International Corporation, a Dubai-based energy trading company reportedly owned by members of the Saudi royal family and active in energy distribution across the Gulf region and parts of Europe.

Bangladesh relies heavily on imported petroleum products to meet domestic demand. The state-owned Bangladesh Petroleum Corporation normally procures about half of its fuel through government-to-government agreements, while the remaining portion is purchased through open international tenders.

Under existing arrangements, crude oil is primarily imported from Saudi Arabia’s state-owned Saudi Aramco and the Abu Dhabi National Oil Company of the United Arab Emirates. These shipments include Arabian Light and Murban crude, which are processed at Eastern Refinery, the country’s sole state-owned oil refinery.

However, recent geopolitical developments have disrupted the global oil supply chain. Officials reported that tensions escalated on 28 February 2026 following military strikes involving the United States and Israel. In response, Iran imposed restrictions on the passage of oil tankers through the Strait of Hormuz from 1 March. The move raised concerns about possible disruptions to international oil shipments and heightened volatility in global energy markets.

As a result, Bangladesh Petroleum Corporation has faced uncertainty in securing both crude and refined fuel shipments. In March alone, seventeen letters of credit were opened to import refined fuel, yet only four cargoes have arrived so far. Six additional vessels are expected, while confirmation for seven shipments remains uncertain. For April, fifteen letters of credit have been issued, but firm supply commitments have been received for only three cargoes despite initial agreements covering thirteen consignments.

To mitigate potential shortages, the corporation initiated discussions with several suppliers before approaching PetroGas International on 6 March. The company submitted its formal offer on 9 March.

Under the proposal, fuel prices would be determined according to the Platts Arab Gulf benchmark on the loading date, with an additional premium of three United States dollars per barrel. A technical evaluation committee formed by Bangladesh Petroleum Corporation reviewed the offer and confirmed that the fuel specifications meet national standards, including the current requirement of diesel containing no more than fifty parts per million sulphur.

Proposed Emergency Fuel Import

Officials noted that the proposed premium appears competitive compared with earlier procurements. Previous international tenders for diesel involved premiums ranging between 4.72 and 4.78 dollars per barrel, while government-to-government negotiations produced the lowest premium of 5.33 dollars. In the case of octane, premiums had reached as high as 6.80 dollars per barrel.

Given the comparatively lower premium offered in the current proposal, the Bangladesh Petroleum Corporation board approved the purchase plan during its meeting on 11 March. Final approval from the Cabinet Committee is expected to determine whether the emergency fuel procurement proceeds in the coming weeks.