The government has approved the direct purchase of 1.75 lakh tonnes of diesel and octane from two international suppliers, bypassing the standard tender process due to rising concerns over Gulf supply disruptions linked to the US-Israeli war on Iran.
The decision was taken by the Cabinet Committee on Government Purchase, which cleared several proposals from state agencies involving an estimated cost of Tk 1,700 crore.
According to the approved proposals, 100,000 tonnes of diesel will be procured from Archer Energy LLC at a cost of Tk 674 crore. Additionally, 75,000 tonnes of fuel—including 50,000 tonnes of diesel and 25,000 tonnes of octane—will be purchased from DBS Trading House FZCO for Tk 1,023 crore.
The ongoing conflict has significantly impacted global oil markets, particularly after Iran effectively blocked the Strait of Hormuz, a critical route through which around one-fifth of the world’s oil supply passes. The head of the International Energy Agency described the situation as the worst energy crisis ever faced globally.
Bangladesh remains highly vulnerable to such volatility due to its increasing reliance on imported energy. In 2023, about 46 percent of the country’s total energy supply came from imports, while in fiscal year 2024–25, imports accounted for 65 percent of power generation needs, a figure that continues to rise.
To diversify supply sources, the government had earlier approved the import of 2 lakh tonnes of diesel from Kazakhstan.
In a separate decision, the Cabinet Committee on Economic Affairs allowed Bangladesh Petroleum Corporation (BPC) to shorten the tender preparation and submission period for refined fuel imports from 42 days to 10 days, aiming to accelerate procurement amid supply pressure.
The meeting was chaired by Amir Khosru Mahmud Chowdhury.
Earlier, the committee had also approved the direct import of 2.75 lakh tonnes of fuel oil, enabling BPC to procure an additional 1 lakh tonnes of petroleum through direct purchase.
According to BPC data, the organization sold 68.35 lakh tonnes of fuel in FY25, of which 43.5 lakh tonnes—approximately 63 percent—were diesel. During the same period, BPC imported 46 lakh tonnes of refined petroleum and 15 lakh tonnes of crude oil.