Cabinet Committee on Economic Affairs is set to consider this week a proposal to import up to 1.475 million tonnes of diesel under an emergency procurement mechanism, as the government moves to strengthen fuel reserves amid heightened geopolitical tensions in the Middle East.
The committee, chaired by Finance and Planning Minister Amir Khosru Mahmud Chowdhury, is scheduled to meet on Wednesday to review 15 procurement proposals submitted by the Energy and Mineral Resources Division (EMRD).
According to the meeting agenda, the diesel would be imported through the Direct Procurement Method (DPM), bypassing the usual competitive tender process.
Officials said the move is aimed at ensuring uninterrupted fuel supplies amid concerns over potential disruptions linked to tensions involving Iran, Israel and the United States.
The proposals cover imports of EN590 10 parts-per-million (ppm) ultra-low sulphur diesel and 50 ppm diesel from a range of international suppliers.
The largest proposal seeks approval to import 125,000 tonnes of EN590 diesel from AKA Energy Ltd. Another proposal involves 50,000 tonnes from Energy Multinex Converence Technologies LLC, while the remaining proposals cover consignments of 100,000 tonnes each from other overseas suppliers.
If approved, the purchases would total about 1.475 million tonnes of diesel, marking one of the country’s largest emergency fuel procurement initiatives in recent years.
The proposed suppliers include Pacific Silverline Limited, Total Trading International, SITIZAMAN International Pte Ltd, Eighteen Solutions SDN. BHD, Importaciones Bravo Group-Chile SpA, Royal Babji Fuel Trading LLC, Sinoproud Import & Export Corp. Ltd., Health Icon International Holdings Pte Ltd., Kumarangazy Oil Field (KOF), H2O Petro-Chem International Pte Ltd., H2O Construction Pte Ltd., Black Swan Global-FZCO and OKERIEL Corporation.
The Cabinet Division’s agenda states that the committee will consider policy approval for the proposed procurement. No contracts have yet been awarded.
Bangladesh relies heavily on imported refined petroleum products, making it vulnerable to global price volatility and disruptions to international shipping routes.
In recent years, the government has increasingly relied on government-to-government agreements and emergency procurement mechanisms during periods of market instability.
Officials said regular suppliers that had earlier delayed shipments or declared force majeure following the outbreak of conflict in the Middle East have since resumed deliveries to the Bangladesh Petroleum Corporation (BPC). As a result, fuel imports have increased since early April, improving domestic supply and distribution.
Diesel is Bangladesh’s most widely used transport fuel, with daily demand estimated at 12,000-12,500 tonnes, or roughly 5.5-5.6 million tonnes annually. It accounts for nearly three-quarters of the petroleum products handled by state-owned BPC.
The country imports crude oil mainly from Saudi Aramco and Abu Dhabi National Oil Company.
Refined petroleum products are sourced through government-to-government agreements with suppliers including Kuwait Petroleum Corporation, PETCO Trading Labuan Company Limited, Emirates National Oil Company (Singapore) Pte Ltd, PetroChina (Singapore) Pte Ltd, PT Bumi Siak Pusako, Unipec Singapore Pte Ltd, PTT International Trading Pte, Numaligarh Refinery Limited and OQ Trading Limited. Additional supplies are procured through international tenders.
Government sources said Bangladesh attempted a similar emergency procurement during the early stages of the Iran-related crisis, but the process faced setbacks after some participating companies were found to lack sufficient experience in handling large-scale fuel shipments.
Under existing procurement rules, participating companies are generally required to demonstrate the capacity to supply at least five million tonnes of fuel annually and provide performance guarantees equivalent to at least five percent of the contract value.
An energy sector expert also questioned whether all prospective suppliers had undergone adequate due diligence before being shortlisted, stressing the need to verify their technical capability and financial strength before any contracts are awarded.
He said the Bangladesh Petroleum Corporation (BPC) had recently decided to borrow a US$2.5 billion loan from the International Islamic Trade Finance Corporation (ITFC) to finance fuel imports, which, he said, would be best utilized by procuring fuel from qualified suppliers to ensure the country’s energy security.