Calls for Greater Competition and Supply Security in Fuel Imports

Bangladesh Petroleum Corporation (BPC) regularly imports refined petroleum products from international markets to meet the country’s fuel demand. Ensuring uninterrupted supply, competitive pricing and energy security has become increasingly important in the procurement process.

According to BPC data, work orders were issued for around 5.51 million tonnes of refined petroleum products during the 2025-26 fiscal year through government-to-government (G2G) arrangements and open tenders. The imports included diesel, jet fuel, furnace oil and octane.

Fuel procurement takes into account several factors, including international market prices, product quality, suppliers’ capacity, previous experience, transportation, insurance, freight costs and risks along international shipping routes. Suppliers submit bids based on these factors, including applicable premiums.

Under a tender covering the June-August period, BPC initiated procurement of between 925,000 and 1.15 million tonnes of refined petroleum products through four packages.

Under Package PG-1, arrangements were made for the supply of between 320,000 and 390,000 tonnes of diesel and between 70,000 and 90,000 tonnes of jet fuel.

Under PG-2, procurement was arranged for between 300,000 and 340,000 tonnes of diesel and between 60,000 and 80,000 tonnes of jet fuel.

In addition, PG-3 covered between 150,000 and 200,000 tonnes of furnace oil, while PG-4 covered between 25,000 and 50,000 tonnes of octane.

International market conditions have a significant impact on fuel import costs. In recent months, changes in shipping risks and instability in the Middle East have also affected transportation costs and fuel premiums.

In the January-June open tender of the 2025-26 fiscal year, premiums quoted for diesel and jet fuel were comparatively lower. In the subsequent June-August tender, premiums for several products increased amid changes in international market and transportation conditions.

Sector stakeholders say Bangladesh needs to diversify its fuel-import sources to reduce exposure to international market volatility. Ensuring effective competition among multiple international suppliers could also help control procurement costs and reduce supply risks over the long term.

Experts emphasise the need for regular assessments of suppliers’ capacity, product quality, delivery schedules and international market conditions. Maintaining alternative sources of supply would also strengthen the country’s preparedness during periods of market disruption.

Uninterrupted fuel supply is vital for industries, transportation, power generation and overall economic activity. Against this backdrop, stakeholders are calling for stronger long-term supply planning alongside a transparent and competitive procurement process.