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The government has decided to import an additional 500,000 metric tonnes of fuel oil to bolster the country’s energy reserves amid ongoing geopolitical tensions in the Middle East, aiming to ensure uninterrupted economic activity and meet rising domestic demand.
Under the plan, approximately 480,000 metric tonnes of fuel will be procured, including 390,000 tonnes of diesel and 90,000 tonnes of jet fuel, as part of a strategy to maintain a 90-day national fuel reserve.
The fuel will be supplied by Singapore-based Unipec Singapore Pte. Ltd. at an estimated cost of Tk 7,672.66 crore (around US$622.5 million), according to officials from the Energy and Mineral Resources Division.
The Bangladesh Petroleum Corporation (BPC) is procuring the fuel through an open international tender process, following policy approval from the Cabinet Committee on Government Purchase.
Joint Secretary Monir Hossain Chowdhury said the government typically imports fuel every six months based on demand projections. The latest procurement aims to meet demand for June through August.
“We have completed administrative approval and forwarded it to BPC. The next step is issuing the Notification of Award, after which supply will begin,” he said.
Officials noted that global fuel markets have become increasingly volatile due to renewed instability in the Middle East and security concerns surrounding the Strait of Hormuz, prompting the government to take precautionary measures to safeguard energy security.
They said the initiative is aimed at ensuring uninterrupted industrial production, agricultural activities, and air transport operations.
According to BPC officials, approval for the tender was granted on June 10, with formal clearance received on June 17.
The supplier has already been issued the Notification of Award, and deliveries are expected to begin soon after the final agreement is signed.
Currently, Bangladesh holds fuel reserves sufficient for about 60 days. The government aims to extend this to a 90-day reserve through regular imports
The estimated import cost is based on an exchange rate of Tk 123.25 per US dollar (as of May 13), though the final expenditure may vary depending on fluctuations in global fuel prices and currency rates. The import will be financed through BPC’s own funds, with provisions for loans or government support if required.
Officials said global fuel prices have surged sharply since March 2026 due to geopolitical tensions.
Security concerns in the Strait of Hormuz have forced vessels to take longer routes, increasing shipping time and costs, while insurers have imposed higher war-risk premiums.
Diesel prices, which peaked at US$178.91 per barrel during the Russia-Ukraine war in 2022, rose to a record US$284.95 per barrel on April 2, 2026.
The average price jumped by over 118 percent from February to April this year.
Despite higher premiums, officials said the price secured through the competitive tender process remains reasonable under current market conditions.
Energy Division officials assured that there is no current fuel shortage in the country, with reserves adequate for the next two months.
“There is no possibility of disruption or crisis in the fuel supply chain,” said Monir Hossain Chowdhury, adding that priority is being given to opening letters of credit despite ongoing dollar constraints.
Officials also highlighted the implementation of an automatic fuel pricing mechanism aligned with international markets, which is expected to provide long-term stability for consumers.
In addition, the government is working to expand fuel storage capacity to better respond to emergencies, reaffirming its commitment to ensuring a steady energy supply for industry, agriculture, and transportation sectors.
