BPC reforms: Meghna, Jamuna to merge; ELBL, SAOCL into ERL

The interim government has initiated reforms in the state petroleum sector. Following recommendations from a reform commission, the government-owned Bangladesh Petroleum Corporation (BPC), which oversees the import, refining, and marketing of petroleum products, will reduce its eight subsidiary companies to five.

Sources said that on January 11, the Energy and Mineral Resources Division sent a letter to the BPC chairman instructing the corporation to take steps to reorganise its eight subsidiaries based on their functions. The letter, signed by Md Ahsan Uddin Murad, deputy secretary of the Companies Affairs-3 Branch, noted that a committee was formed on February 11, 2025, to rationalise staff, restructure organisational frameworks, and implement other necessary reforms for BPC and its subsidiaries. The committee submitted its report on December 8.

Subsequently, a meeting was held on December 10 under the chairmanship of the adviser for Power, Energy, and Mineral Resources. During the meeting, the committee’s recommendations were discussed, and a decision was taken to reduce BPC’s eight subsidiaries to five.

According to the letter, BPC has been instructed to streamline operations by consolidating its existing systems and downsizing its subsidiaries. No new posts may be created, nor may existing posts be abolished or upgraded. The eight existing companies under BPC are to be reorganised into five entities based on their functional roles.

BPC has full or partial ownership of eight companies: fully owned Eastern Refinery PLC (ERL), LP Gas Limited (LPGL), Eastern Lubricants Blenders PLC (ELBL), and Petroleum Transmission Company PLC (PTCPLC); joint-venture companies Padma Oil Company PLC, Meghna Petroleum Limited, and Jamuna Oil Company Limited; and a 50% stake in Standard Asiatic Oil Company Limited (SAOCL).

Under the ministry’s decision, ELBL and SAOCL—after acquisition of SAOCL’s 50% private share—will be merged with ERL. Meanwhile, the three marketing companies—Padma, Meghna, and Jamuna—will be consolidated into two entities. According to the recommendations, the merger of Jamuna Oil Company and Meghna Petroleum into a single company has already begun.

Several BPC officials spoke to Jago News, though many declined to comment on the mergers. Some officials, speaking on condition of anonymity, said that among BPC’s subsidiaries, marketing companies such as Padma, Meghna, and Jamuna generate more profit from non-operational income than from operational activities. They alleged that, taking advantage of weaknesses in labour laws, government funds were placed in fixed deposits at banks, with the income shared.

They added that while ERL is a refinery, and ELBL and SAOCL are blending-plant-based companies, the latter two were converted into marketing companies without following proper procedures. The reform commission is now addressing these issues. Merging ELBL and SAOCL with ERL would secure jobs and benefits for employees while reducing institutional costs, the officials said.

Another official, also speaking anonymously, said SAOCL had long remained outside BPC’s effective control, with private co-owners often defying BPC management. Until 2020, the company faced allegations of embezzlement involving hundreds of crores of taka, and several cases have been filed against its directors and officials by the Anti-Corruption Commission. The government’s acquisition of the private stake, the official said, would help reduce corruption and increase transparency.

When contacted, BPC Secretary and Deputy Secretary Shahina Sultana told Jago News that, as part of the Energy Division’s reform programme, the ministry had decided to reduce BPC’s eight subsidiaries to five. “We have received a letter from the energy division instructing the consolidation of the three marketing companies into two, although it has not specified which companies will be merged,” she said.

She added that the merger process would be lengthy and would require detailed discussions to determine how the companies would be integrated.

However, another official, speaking on condition of anonymity, said that although the plan mentions consolidating Padma, Meghna, and Jamuna into two companies, the ministry has primarily decided to merge Meghna and Jamuna. “The process is extremely complex,” the official said.