BPC to import 1.8m tonnes of diesel from spot market

To avert a severe domestic shortage triggered by the Iran-US-Israel conflict, the Bangladesh Petroleum Corporation (BPC) is working around the clock to stabilise the national energy supply chain by procuring 1.8 million tonnes of diesel from the spot market.

The BPC is currently navigating a precarious landscape defined by storage limitations and extreme uncertainty regarding crude oil imports. While the government maintains that current reserves can sustain the country for approximately one week, the volatility of the international market has forced a shift toward emergency procurement.

Local fuel pump owners have already issued warnings of potential closures if the supply remains inconsistent. Although the crisis is global, the BPC is facing significant "force majeure" declarations from its regular suppliers, who are citing the conflict as a reason for their inability to fulfill April contracts.

According to internal documents from the Energy and Mineral Resources Division obtained by Jago News, the BPC held its 1021st board meeting via an online platform late Friday night. In that session, the board approved the purchase of 800,000 tonnes of diesel.

The procurement plan includes 100,000 tonnes of diesel from Maxwell International SPC (USA) at an estimated cost of Tk 2,033 crore, 500,000 tonnes from AP Energy Investments Ltd with varying sulfur grades at an estimated Tk 10,162 crore, and 200,000 tonnes from Superstar International (Group) Ltd (Hong Kong) at an estimated Tk 3,911 crore.

In a follow-up meeting held on Sunday, March 22, the BPC approved the purchase of an additional 1 million tonnes of diesel from the Malaysian firm BDS Trading.

The Strait of Hormuz, often described as the "lifeline of the global economy," has become the epicenter of the crisis. While Bangladesh’s refined fuel largely arrives from Singapore and Malaysia, its entire supply of crude oil from Saudi Arabia and the UAE must pass through this sensitive waterway.

Reports indicate that the tanker Nordic Polack, carrying 100,000 tonnes of crude oil, is currently stranded at Saudi Arabia’s Ras Tanura port. Another vessel, the Omera Galaxy, is facing delays as ship owners remain reluctant to navigate the war zone.

Domestic demand has surged as transport owners and distributors engage in panic buying, fearing imminent price hikes. As of March 20, BPC records showed a diesel reserve of 135,622 tonnes. However, after accounting for "dead stock" and daily supply requirements, insiders suggest the usable reserve has dwindled to a critical 7–8 day supply.

"We are working through the night to ensure the country remains protected," a BPC official stated on the condition of anonymity. "The priority is not the method of procurement, but ensuring the survival of the national supply chain."

BPC Chairman Md Rezanur Rahman was unavailable for comment, though Director (Finance) Naznin Parveen confirmed that the agency is in active negotiations with multiple spot-market entities to bridge the supply gap.