Bangladesh’s government has approved the emergency purchase of 100,000 metric tonnes of crude oil to secure domestic energy supplies amid rising global instability linked to tensions involving Iran, the United States and Israel.
The decision was taken on Tuesday at a meeting of the Cabinet Committee on Government Purchase, chaired by Finance Minister Amir Khosru Mahmud Chowdhury.
The committee approved both the crude oil import and additional diesel procurement to address potential supply disruptions.
Under the plan, the government will import the crude oil through a direct procurement method from Abir Trade and Global Markets.
Officials said the move is aimed at maintaining stable fuel supplies and preventing shortages as global energy markets face heightened uncertainty due to ongoing geopolitical tensions.
In addition to crude oil, the committee approved the purchase of 160,000 metric tonnes of diesel. This includes 60,000 tonnes of gas oil with 0.5% sulphur content from Indonesia’s PT Bumi Siak Pusako Japin, as well as 100,000 tonnes of EN590-grade diesel (10 ppm sulphur) from ExxonMobil Kazakhstan Inc.
Officials familiar with the meeting said the proposals were first cleared in principle by the Cabinet Committee on Economic Affairs before receiving final approval from the purchase committee.
The Energy and Mineral Resources Division presented the import plans, citing the urgent need to build fuel reserves in anticipation of possible disruptions in global supply chains.
They noted that volatility in international energy markets has intensified due to the evolving geopolitical situation, making pre-emptive stockpiling essential to ensure uninterrupted domestic supply.
Several alternative procurement proposals were, however, withdrawn. These included plans to import crude oil from Falco Corporation Limited in Hong Kong, as well as separate diesel purchase proposals from Archer Energy LLC and Maxwell International SPC. Officials did not provide detailed reasons for the withdrawals.
The latest approvals reflect Dhaka’s efforts to safeguard its energy security as global oil markets remain on edge amid escalating geopolitical risks.