Govt relaxes fuel import condition amid price pressure

The government has relaxed the existing 50:50 ratio between government-to-government (G2G) deals and international tenders for refined fuel imports for September-December, allowing it to buy a larger share of fuel directly from foreign state-owned companies. 

The Cabinet Committee on Government Purchase today approved a proposal from the Energy and Mineral Resources Division to import refined petroleum products worth Tk 12,537.5 crore during the four-month period.

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The proposal was placed in line with the committee's decision to relax the 50:50 ratio between G2G procurement and international tenders for the period.

Under the approved proposal, Bangladesh will import refined fuel from three state-owned companies -- Unipec and PetroChina of China and BSP of Indonesia -- at negotiated premiums and quantities based on prevailing reference prices.

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The approval comes as rising international oil prices put pressure on the cost of fuel imports.

It also follows the committee's decision last week to reject five separate refined-fuel procurement packages for September-December because of the prices offered.

The five packages covered around 5.95 lakh to 7.05 lakh tonnes of diesel, along with about 90,000 tonnes of jet fuel and 75,000 to 1 lakh tonnes of furnace oil. The recommended suppliers included Trafigura, Vitol Asia and Unipec Singapore.

The packages were valued at around Tk 11,943 crore in total, which officials said was unusually high compared with recent procurement costs.

The committee asked the Energy and Mineral Resources Division to negotiate lower premiums and refinery prices with the suppliers before resubmitting the proposals for approval.

Bangladesh's exposure to the Middle East is relatively limited in refined petroleum products, as it sources diesel and other refined fuels from a wider group of suppliers through G2G deals and international tenders.

Recent purchases have involved suppliers from China, Malaysia, the UAE, Indonesia, Thailand, India and Oman, while crude oil imports remain concentrated in Saudi Arabia and the UAE.

Even so, officials are concerned about the broader impact of rising global oil prices.

Brent crude recently crossed $100 a barrel, which could further increase the cost of refined petroleum products imported by Bangladesh.

A similar relaxation was made for fuel imports for the January-June 2026 period, when the government approved G2G procurement of refined petroleum products from several foreign state-owned suppliers.