Equal Opportunity Policy Planned for Fuel Business, Bangladesh to Expand Private Sector Participation

The Government of Bangladesh is preparing a new policy to open the country’s fuel import, marketing, and distribution sector to qualified private companies alongside state-owned enterprises, aiming to strengthen energy security, increase market competition, and ensure uninterrupted fuel supply during emergencies.

Speaking at a seminar titled “Energy Sector Crisis: Prospects and the Way Forward,” organized by the Forum for Energy Reporters Bangladesh (FERB) at Dhaka Club, Adviser to the Ministry of Power, Energy and Mineral Resources Iqbal Hasan Mahmud said the upcoming framework would provide equal opportunities for all eligible businesses rather than favoring any single company.

He noted that countries such as India have successfully allowed both public and private companies to participate in fuel marketing, and Bangladesh intends to adopt a similar competitive model alongside state-owned entities including Padma, Meghna, and Jamuna Oil Companies.

The adviser said the recent geopolitical tensions in the Middle East exposed vulnerabilities in the country’s fuel supply chain, leading to panic buying, long queues at filling stations, black-market activities, and unauthorized online fuel sales. These experiences prompted the government to consider greater private-sector participation.

Mahmud also highlighted the government’s ambitious renewable energy agenda, targeting 10,000 MW of solar power generation through rooftop solar and other projects. He said incentives, including tax holidays, have been introduced to attract private investment, with projects expected to be implemented under cluster-based and OPEX models.

Addressing the gas shortage, he warned that inadequate gas supply directly affects industrial production, cash flow, and business sustainability, increasing the risk of loan defaults. Ensuring reliable energy for industries, he added, remains a government priority.

The adviser expressed optimism about cooperation with Malaysia’s state-owned energy company Petronas to develop the Bhola gas field, saying bilateral discussions have made encouraging progress.

He further said Bangladesh is seeking greater foreign investment in offshore oil and gas exploration and plans to engage leading international energy companies. The government is also positively considering the use of LPG as an alternative fuel for industries where appropriate.

Speaking at the seminar, State Minister Anindya Islam Amit said Bangladesh has nearly 30,000 MW of installed power generation capacity, but fuel shortages prevent many plants from operating at full capacity. He added that work is progressing on additional Floating Storage and Regasification Units (FSRUs) and a land-based LNG terminal at Matarbari to strengthen the country’s gas supply infrastructure.

Energy experts and industry leaders attending the seminar stressed the importance of policy stability, increased domestic gas exploration, expanded LNG infrastructure, and accelerated investment in renewable energy to ensure Bangladesh’s long-term energy security.