Bangladesh is moving to secure additional fuel supplies as global energy markets face turbulence triggered by escalating tensions in the Middle East.
The state-owned Bangladesh Petroleum Corporation (BPC) has initiated a process to purchase 200,000 tonnes of diesel from the international spot market to ensure an uninterrupted fuel supply across the country.
Officials said preliminary discussions have already been held with a US-registered supplier, and the procurement will be carried out in line with prevailing international market prices.
Global tensions disrupt energy markets
The decision comes as geopolitical tensions rise following clashes involving Iran, the United States and Israel, creating uncertainty across the Middle East.
In recent days, missile and drone strikes have reportedly targeted energy facilities linked to US and Israeli interests in the region, including sites in Saudi Arabia and the United Arab Emirates.
The developments have raised concerns about shipping and energy flows through the Strait of Hormuz, one of the world’s most critical energy corridors.
Roughly a quarter of the world’s oil consumption, along with significant volumes of liquefied natural gas (LNG) and liquefied petroleum gas (LPG), passes through this narrow waterway connecting the Persian Gulf to the Arabian Sea.
Major oil exporters such as Saudi Arabia, the UAE, Kuwait, Qatar, Iraq and Iran rely heavily on the route to transport crude oil to global markets. On average, around 20 million barrels of crude oil move through the Strait of Hormuz each day.
Shipping restrictions imposed by Iran this week amid the rising tensions have pushed global oil prices upward and raised fears of supply disruptions.
Bangladesh watches the supply routes
While the situation has unsettled global energy markets, BPC officials said most refined fuel imported by Bangladesh comes from suppliers in Singapore, Malaysia, Indonesia and China, meaning shipments do not need to pass through the Strait of Hormuz.
However, crude oil imports from Saudi Arabia and the UAE under the government-to-government (G2G) arrangement do travel through the strategic waterway.
One tanker, Nordic Pollock, is currently waiting at Ras Tanura port in Saudi Arabia to load about 100,000 tonnes of crude oil for Bangladesh.
Another vessel, Omera Galaxy, is scheduled to reach either Jebel Dhanna or Fujairah port in the UAE on March 22 to load around 100,000 tonnes of Arabian Light crude.
A BPC official, requesting anonymity, said the ongoing war has made ship owners cautious about operating in conflict-affected waters.
Rising domestic demand
The global crisis has also begun affecting domestic fuel consumption patterns.
Fearing potential price hikes or shortages, fuel dealers and vehicle operators have reportedly started stockpiling diesel and octane. As a result, sales at BPC’s marketing companies have surged sharply in recent days, rapidly depleting available stocks.
To maintain a stable supply chain, BPC has moved to procure additional diesel from the spot market.
According to sources, BPC plans to purchase 200,000 tonnes of refined diesel from the US-registered company Energy Oil and Gas LLC, whose local agent in Bangladesh is the Meghna Group of Industries.
The diesel may be sourced from Kazakhstan and delivered in eight separate shipments of 25,000 tonnes each.
A senior BPC official said discussions are ongoing with the supplier.
“Our concerned officials are continuing negotiations to buy diesel from the spot market. The company has indicated that it will likely supply the diesel from Kazakhstan. If everything proceeds smoothly, the fuel will be delivered in eight parcels of 25,000 tonnes,” the official said.
He added that quotations have already been collected through a local agent and will be reviewed by BPC’s procurement committee. Once the ministry approves the proposal, a work order will be issued to the supplier.
Procurement process nearly complete
Confirming the development, BPC Director for Finance, Operations and Planning Naznin Parvin said the corporation is moving quickly to complete the emergency purchase.
“Normally, we procure refined fuel through international tenders. But in this crisis situation, it is necessary to arrange emergency fuel supplies,” she said.
“A process is underway to purchase 200,000 tonnes of diesel from the spot market. We have already completed about 95 per cent of the process.”
Naznin Parvin added that the emergency purchase is unlikely to impose additional financial pressure on BPC.
“Even if we buy from the spot market, BPC will not have to spend extra money. We already have benchmark rates from our current suppliers, and the diesel will be purchased at a price close to those rates,” she said.
Industry analysts say the move reflects Bangladesh’s efforts to secure fuel supplies early as global energy markets remain volatile due to geopolitical tensions and disruptions in key shipping routes.