The Bangladesh government is moving to allow private companies to import, store, distribute and sell refined petroleum products, potentially ending the state-run Bangladesh Petroleum Corporation’s (BPC) near-monopoly in the fuel market.
The Energy and Mineral Resources Division has directed BPC to prepare a draft “Private-Sector Refined Fuel Import, Storage, Transportation, Distribution and Marketing Policy, 2026” as part of efforts to introduce greater competition and diversify fuel supplies.
The move follows a proposal by Bashundhara Oil and Gas Company to import up to 3.35 million tonnes of refined fuel annually, including diesel, petrol, octane and furnace oil. Bangladesh’s annual fuel demand is around 7.4 million tonnes.
Energy Minister Iqbal Hassan Mahmood said private companies would be allowed to compete with BPC to reduce dependence on a single supplier and strengthen energy security.
“We want private companies to bring fuel alongside us so that there is fair competition. We want to get out of the monopoly,” he said.
The minister stressed that the proposed policy was not designed to benefit any particular company and said applications had been received from several firms.
The proposal still requires further review before consideration by the relevant government committees and the Cabinet.
