The government has given in-principle approval to import 300,000 metric tonnes of diesel to meet urgent energy demand amid global market disruptions triggered by the ongoing Middle East conflict.
The approval came at a meeting of the Cabinet Committee on Economic Affairs held on Wednesday at the Jatiya Sangsad Bhaban, chaired by Finance Minister Amir Khosru Mahmud Chowdhury.
Officials said the decision was taken in response to growing uncertainty in the global energy market due to escalating tensions involving Iran, Israel, and the United States, which have disrupted supply chains and heightened price volatility.
Under the approved proposals from the Energy and Mineral Resources Division, a total of 300,000 metric tonnes of diesel will be imported through direct procurement from international suppliers.
The consignments include one lakh tonnes each from three firms—year Energy AG, K&R International Trading Company, and M/S Sikder International—covering different sulphur grades of diesel.
The move follows an earlier decision on April 4, when the Cabinet Committee on Government Purchase approved the import of 100,000 metric tonnes of diesel and two LNG cargoes on an emergency basis.
In that meeting, diesel was approved for import from Kazakhstan-based Kazakh Gas Processing Plant LLP at an estimated cost of $55.99 million.
According to officials, Bangladesh’s heavy reliance on imported fuel has made it vulnerable to global shocks.
The Bangladesh Petroleum Corporation is responsible for importing, storing, refining, and distributing petroleum products under existing laws.
Currently, the corporation imports about half of its fuel through government-to-government arrangements, with the rest procured through international tenders. Besides, crude oil is refined locally at Eastern Refinery PLC.
Since late February, global energy markets have faced significant disruption following heightened geopolitical tensions in the Middle East. Restrictions on shipping through the Strait of Hormuz have affected supply flows, leading to sharp fluctuations in fuel prices, premiums, and freight costs.
At the same time, disruptions in LNG exports from Qatar and Oman have driven up gas prices in Europe, increasing demand for liquid fuels and intensifying competition in the global market.
Officials also said that some existing suppliers, including Unipec Singapore Pte Ltd and Petco Trading Labuan Company Ltd, have declared force majeure and failed to deliver scheduled shipments for April, raising concerns over supply security.
In this context, the government opted for direct procurement under emergency provisions of the Public Procurement Act to ensure timely fuel supply and avoid disruptions in the domestic energy system.
Analysts say the latest move reflects a broader effort by the government to stabilise fuel supply and mitigate the impact of global volatility on the domestic economy.