Tensions are mounting within Bangladesh Petroleum Corporation (BPC) over a government move to allow private companies to import, store, transport, distribute and market refined fuel oil.
The Energy and Mineral Resources Division has asked BPC to submit by 10 August a draft of the proposed Private Refined Fuel Import, Storage, Transportation, Distribution and Marketing Policy-2026. However, the BPC chairman’s post remains vacant, while officials and employees have opposed the initiative, citing concerns over national energy security and private companies’ ability to maintain supplies during crises.
BPC and employees of its oil marketing companies have launched a protest programme against the move.
The BPC chairman’s post remained vacant on Sunday, a day before the deadline. Chairman’s Personal Secretary Md Niaz Morshed said no new chairman had been appointed and BPC Director (Operations) A K Mohammad Shamsul Ahsan was overseeing the draft policy.
BPC General Manager (Distribution and Marketing) Md Ferdousi Masum Himel said the draft was being examined by the Commerce and Operations Department, while BPC General Manager (Commerce and Operations) Mohammad Zahid Hossain said he had no information about it.
The issue has created unease within BPC after former chairman Rezanur Rahman was made an Officer on Special Duty (OSD) on 26 July. According to BPC sources, Rahman had opposed handing over fuel oil imports to private companies. Earlier, on 6 March, BPC Director (Operations and Planning) AKM Azadur Rahman and Director (Marketing) Muhammad Ashraf Hossain, both joint secretary-level officials, were also made OSDs on allegations of negligence.
Energy security, subsidy concerns
BPC officials opposing the move said fuel oil cannot be treated merely as a commercial commodity, as uninterrupted supply is linked to the economy, transport, power generation, agriculture, industry and national security.
They questioned whether private companies would maintain supplies or bear financial losses during a crisis. During the Iran-Israel war, BPC provided around Tk20,000 crore in subsidies to keep domestic fuel supplies normal despite volatility in international prices and supply chains, they said.
“If a private company has to import fuel at a high international price, who will bear the additional cost if the government wants to keep domestic prices stable?” they asked.
Fuel companies oppose move
Leaders of the CBA of state-owned oil marketing companies have opposed the proposed initiative. Padma Oil Company CBA President Md Jasim Uddin called it a “deep conspiracy” and warned that private fuel imports could increase consumer costs and create instability in the energy sector.
“Will a private company ever import oil with a huge subsidy during a crisis? It will never do so,” he said. “If the entire sector goes into private hands, they may import oil when they find it profitable and stop when they do not. That could bring the entire country’s economic activities to a standstill.”
Jasim said further action under the employees’ protest programme would be decided after discussions among leaders.
Former director of Chattogram Chamber of Commerce and Industries Mahfuzul Hoque Shah said private-sector participation was needed to address the energy crisis, with refinery proposals considered under strong monitoring systems and reforms in the energy sector.
Four groups seek fuel import entry
The proposed policy comes after several business groups sought permission to enter the fuel import and marketing business.
According to Energy and Mineral Resources Division sources, four groups—TK Group, Meghna Group, Bashundhara Group and another applicant—have approached the government for permission to import and market fuel oil privately. Three groups, excluding Bashundhara Group, have proposed setting up refineries to import crude oil, refine it locally and sell the products, while Bashundhara Group has sought permission to import refined fuel oil directly.
In a letter signed by Bashundhara Group Chairman Sayem Sobhan Anvir on 24 May, Bashundhara Oil and Gas Company Limited sought permission to import, sell and market refined fuel oil under its own management.
The Energy and Mineral Resources Division formed an 11-member committee on 14 July, with BPC Director (Operations) as convener, after the application. Sources said the committee submitted its report on 21 July, following which the policy drafting process began.
On 6 August, Senior Assistant Secretary of the Energy and Mineral Resources Division’s Operation-2 branch Asif Ahmed instructed BPC to submit a draft policy by 10 August, saying a clear policy was needed for private-sector import, storage, transportation, distribution and marketing of refined fuel oil to ensure uninterrupted supply.
