BD govt moves to import up to 3.75 lakh tonnes of fuel

The government of Bangladesh has taken a series of major decisions to strengthen the country’s fuel supply chain as concerns over energy shortages persist amid tensions in the Middle East.

At a meeting held on Tuesday at the Cabinet Division, chaired by Finance Minister Amir Khasru Mahmud Chowdhury, the Cabinet Committee on Economic Affairs gave approval to a proposal for the direct purchase of an additional 2 lakh tonnes of diesel and octane. The move is aimed at ensuring uninterrupted fuel supply during the ongoing global uncertainty linked to the Iran conflict.

In a parallel decision, the Cabinet Committee on Government Purchase approved the procurement of 1,75,000 tonnes of fuel, including 1,50,000 tonnes of diesel and 25,000 tonnes of octane.

Officials said these steps are part of a coordinated effort to stabilise the domestic energy market.

As per government procedures, approval from the economic affairs committee is required before making such purchases from international or local sources. Once cleared, procurement is executed following final approval from the purchase committee.

Under the approved plan, 50,000 tonnes of diesel and 25,000 tonnes of octane will be imported from Dubai-based DBS Trading House FZCO through direct purchase at a cost of Tk1,023.61 crore. Additionally, 1 lakh tonnes of diesel will be sourced from Archer Energy LLC at a cost of Tk674.6 crore.

The committee has also given general approval for further imports, including another 1 lakh tonnes of diesel each from Archer Energy LLC and Mazda Oil Co Ltd, indicating a continued effort to build adequate reserves.

Beyond fuel procurement, the meeting also cleared several key development initiatives. One such project is the Dhaka Environmentally Sustainable Water Supply (DESWS) programme, for which Germany-based Fichtner GmbH & Co KG has been appointed as the consultant for management, design, and supervision services. The contract, worth Tk96.95 crore, will run for 24 months starting from September 2025.

In addition, the Ministry of Food received approval to procure three crore Hessian sacks at an estimated cost of Tk215.65 crore. These sacks, each with a 30kg capacity, will be used to strengthen the country’s food storage and distribution system.

Officials say the combined measures reflect the government’s broader strategy to ensure both energy security and logistical preparedness in the face of evolving global challenges.