Bangladesh Moves to Bring Private Sector into Petroleum Import and Marketing

The Bangladesh government is planning to introduce greater private-sector participation in the import and marketing of petroleum products as part of efforts to ensure a more stable and efficient fuel supply system.

The Bangladesh Petroleum Corporation (BPC) has been tasked with preparing a new policy framework that would allow private companies to participate in the petroleum business.

According to sources familiar with the process, the proposed policy is considering allowing private-sector companies to handle up to 30 percent of the petroleum business. The move is expected to create greater opportunities for private investment and make better use of existing private-sector infrastructure and storage facilities.

Bangladesh currently imports around 7.5 million tonnes of refined and crude petroleum products annually, with a major portion of the import and distribution process managed through BPC.

Several private companies already operate refineries and produce fuel domestically, although their access to the retail market remains limited.

The proposed policy could increase private investment in the fuel sector while expanding the country’s storage and distribution capacity. Greater participation by private companies could also introduce more competition and improve services for consumers.

A similar expansion of private-sector participation has already taken place in the LPG market, where private companies play a major role in meeting domestic demand.

Energy expert and Independent University, Bangladesh (IUB) Vice-Chancellor Professor M Tamim said greater public-private participation could be a positive step toward liberalising the fuel market. However, he stressed that effective government regulation and oversight would be necessary to ensure that consumers benefit from the reform.

Some market stakeholders have also suggested strengthening the role of the Bangladesh Energy Regulatory Commission (BERC) in determining fuel prices as part of the proposed changes.

Sources said several companies, including Bashundhara Group, have already expressed interest in expanding their involvement in the energy sector.

If implemented, the new policy could create fresh investment opportunities in petroleum import, storage and marketing while increasing private-sector participation in Bangladesh’s long-term fuel supply system.