Bangladesh Petroleum Corporation (BPC) has stopped accepting proposals to purchase fuel oil under the direct procurement method (DPM), saying uninterrupted supplies can now be maintained through its regular procurement process.
The state-owned oil importer has asked suppliers not to submit any further offers under the DPM until further notice.
The decision was announced in a notice issued on September 27 and signed by Mohammad Zahid Hossain, BPC’s general manager for commercial and operations.
BPC said it had introduced DPM purchases from various suppliers to safeguard the country’s fuel supply against possible disruptions caused by the global war situation.
The emergency procurement arrangement was intended to ensure uninterrupted supplies amid concerns that international conflicts could disrupt fuel markets, shipping and supply chains.
However, BPC said the current supply situation had improved sufficiently for regular procurement procedures to maintain uninterrupted supplies.
“As uninterrupted supply is currently being maintained through BPC’s conventional procurement process, the need for purchasing fuel oil under the DPM has diminished,” the notice said.
BPC therefore requested all concerned suppliers to refrain from submitting proposals for fuel oil supplies under the direct procurement method until further instructions are issued.
The move marks a shift away from the emergency procurement arrangement adopted to address potential supply disruptions. It also indicates that the corporation currently considers its established procurement channels adequate to meet domestic fuel requirements.
The decision comes amid continued volatility in international oil markets and concerns over the impact of geopolitical tensions on fuel prices, freight and insurance costs.