Government is buying another 5 lakh tonnes of fuel oil to increase its reserves

Amid the ongoing global tensions in the Middle East, the government is buying another 5 lakh metric tonnes of fuel oil to increase its fuel reserve capacity. This initiative has been taken to keep the country's economic and commercial activities running and meet the domestic demand of the energy sector.

According to the new decision, another 4 lakh 80 thousand metric tonnes of fuel oil is being imported into the country, taking into account the country's 90-day storage capacity. Of this, 3 lakh 90 thousand metric tonnes are diesel (gas oil) and 90 thousand metric tonnes are jet fuel (aircraft fuel).

Singapore's renowned company 'Unipek Singapore Pte Limited' will supply this fuel, the cost of which is estimated at 7 thousand 672 crore 66 lakh taka.

The Energy and Mineral Resources Department said that Bangladesh Petroleum Corporation (BPC) is purchasing this fuel oil through an international open tender process. Recently, the Cabinet Committee on Public Procurement gave in-principle approval to the BPC's proposal in this regard.

Confirming the matter, Joint Secretary of the Energy and Mineral Resources Department, Monir Hossain Chowdhury, said, "The government usually imports fuel oil, especially diesel and jet fuel, based on the country's demand every six months. Therefore, the BPC sends a proposal to the ministry against the demand of these three months - June, July and August. Later, it is sent for approval by the Cabinet Committee on Public Procurement. The committee has already approved it."

He further said, "We have sent it to the BPC with administrative clearance. Now, as the next process, BPC will give NOA (Notification of Award) to the supplying company. From then on, the company will start supplying fuel oil.

BPC officials say that at a time when the global fuel market is extremely unstable due to the renewed geopolitical unrest in the Middle East and the security crisis in the Strait of Hormuz, the current government led by Prime Minister Tarique Rahman is trying to ensure the country's internal energy security in a bold and far-sighted initiative. Keeping the wheels of economic activity running, industrial production and agriculture uninterrupted, and maintaining normal air traffic have been taken into great consideration.

BPC Manager (Trade and Operations) Md. Mizanur Rahman said that on June 10, the Cabinet Committee on Government Procurement approved the international tender proposal, the letter of which was received on June 17. 'Noa' has already been issued to the supplier company. Now, after the final agreement, the oil supply process will start very soon.

He also said, 'The current government's goal is to keep 90 days of fuel oil in the country at any cost. Currently, there is about 60 days of stock. Oil will be imported regularly every six months to meet demand.

Financial cost and dollar calculation

A proposal from BPC sent to the Energy Department on May 24 said that a maximum of 390,000 tons of diesel and 90,000 tons of jet fuel will be imported as per demand between June and August. The tender has been allowed to increase or decrease the quantity slightly to maintain the country's fuel supply. According to Sonali Bank's dollar exchange rate on May 13 (1 dollar equals 123.25 taka), the total possible cost of this import is estimated at 622 million 25 lakh 28 thousand 656 US dollars. Which is about 7 thousand 672 crore 66 lakh taka in Bangladeshi currency. However, the actual cost may be slightly more or less due to price fluctuations in the international market and changes in the value of the dollar. The proposal said that the money for this import will be met from BPC's own funds and, if necessary, through loans or government assistance.

Concerned global context and market situation

The BPC proposal on the global concern and market situation states that since March 2026, fuel oil prices in the world market have been very high due to the new geopolitical crisis in the Middle East. Due to the lack of security in the Strait of Hormuz, ships have been using long alternative routes, resulting in increased transit times and operating costs. In addition, insurance companies are demanding additional war risk premiums and ship rentals.

The proposal states that the current situation is more complex than the Russia-Ukraine war of 2022. Although the highest price of diesel per barrel in 2022 was $178.91, it reached a record $284.95 on April 2, 2026. While the average price of diesel was $85.997 in February, it increased by 118.50 percent in April to $187.904.

Although the premium has increased slightly due to global instability this time, the BPC tender evaluation committee considers this price obtained through open international competition to be reasonable in the current reality.

There is no shortage of fuel in the country

Assuring about fuel reserves, the energy department officials said that there is currently no shortage of fuel oil in the country. There is sufficient reserves for the next 60 days. There is no danger of disruption in supply as the government is giving priority to opening LCs even amid the dollar crisis.

In this regard, Joint Secretary Monir Hossain said, 'There is no danger of any disruption or crisis in the fuel oil supply chain in the country.'

The ministry officials also said that an automatic formula is being implemented to determine prices in coordination with the world market, which will provide relief to consumers in the long term. In addition, work is underway to increase fuel storage capacity to deal with emergency situations. The government is determined to maintain normal fuel supply to industry and agriculture at any cost.