Nine of the 11 liquefied natural gas (LNG) cargoes bound for Bangladesh in March have cleared the high-risk area linked to the ongoing conflict between Israel and Iran.
Power Minister Iqbal Hasan Mahmud Tuku briefed Prime Minister Tarique Rahman on the current energy supply situation at the Prime Minister’s Office following Iran’s closure of the Strait of Hormuz.
The minister assured the Prime Minister that Bangladesh has sufficient fuel stocks for 30 days. The State Minister for Power and Energy and the secretary of the Energy and Mineral Resources Division (EMRD), Mohammad Saiful Islam, were also present.
“We have assured the Prime Minister about the 30 days’ energy stockpile and maximum LNG imports already in the pipeline before the outbreak of the Iran–Israel war,” Mr Islam told Just Energy News.
He said the EMRD expects to receive the remaining LNG cargoes from Qatar via alternative routes despite the continuing conflict.
He added that the state-owned Bangladesh Petroleum Corporation (BPC) is not concerned about the Iran–Israel conflict in the short term, as Bangladesh has already secured refined oil import agreements through to June 2026 via both government-to-government deals and competitive tenders.
A senior official said fuel supplies are expected to remain uninterrupted even if the Strait of Hormuz remains closed, as Bangladesh has avoided the route since last year’s tensions.
“We are avoiding the Strait of Hormuz for importing required petroleum fuels until June,” BPC chairman Md Rezanur Rahman told Just Energy News on Saturday.
Mr Rahman expressed confidence that refined oil imports from China, Malaysia, Indonesia and Singapore would remain unaffected by the conflict.
However, Bangladesh will continue importing crude oil from Saudi Arabia and Abu Dhabi, with shipments also planned to bypass the Strait of Hormuz.
Despite the expected continuity of supply, BPC officials warned that a prolonged conflict could push up fuel prices.
“We have already settled the premium for fuel imports, but tariffs may increase if the war continues,” Mr Rahman said.
He added that BPC currently holds around one month’s supply of various fuels, in line with its storage capacity.
In 2025, BPC identified an alternative supply route via the Fujairah terminals in Abu Dhabi. The corporation plans to import between 1.4m and 1.5m metric tonnes of crude oil annually through the Fujairah route if the Strait of Hormuz becomes inaccessible.
Bangladesh imports crude oil worth approximately $1.05bn each year from Saudi Arabia and Abu Dhabi, with the Strait of Hormuz historically serving as a key transit route. “We only use the Strait of Hormuz for crude oil shipments,” another official said.
Fuel tariff adjustment under consideration
BPC indicated that domestic fuel tariffs may be revised if the conflict persists and international prices remain elevated. At present, the corporation spends between $450m and $500m per month importing and refining petroleum products.
Strategic reserves ensure short-term stability
Despite global uncertainties, Bangladesh says it is prepared for short-term supply disruptions. “We have a strategic reserve of crude oil sufficient for 30 days, and several vessels are currently in the pipeline,” Mr Rahman said.