The Bangladesh government is preparing to open petroleum imports to private companies as part of a wider effort to reduce the growing financial pressure created by energy subsidies, Energy and Mineral Resources Minister Iqbal Hasan Mahmud has said.
Speaking at a discussion on energy security organised by the Bangla daily Bonik Barta at Pan Pacific Sonargaon Dhaka on Wednesday, the minister said, "The proposed policy would allow private firms to import petroleum products, a move intended to ease the government’s subsidy burden while encouraging greater private sector participation in the energy market.”
He also revealed that the government is considering bringing the private sector into electricity distribution as part of broader reforms aimed at improving efficiency and reducing public expenditure.
Bangladesh currently imports fuel and generates electricity at costs that are higher than the prices charged to consumers. The gap between production costs and retail prices has required significant government subsidies, placing increasing pressure on the national budget.
According to the minister, reducing this financial burden has become a priority as energy demand continues to rise and the government seeks more sustainable ways to manage the sector.
The proposed reforms signal a potential shift in Bangladesh’s energy policy, with greater reliance on private investment and market participation to strengthen energy security while improving the long-term financial sustainability of the sector.
Although the minister outlined the government’s intentions, he did not indicate when the proposed changes could be implemented or provide further details on the regulatory framework for private participation.
The announcement comes as Bangladesh continues to explore measures to modernise its energy sector, improve operational efficiency and reduce the fiscal impact of subsidies while ensuring a stable supply of fuel and electricity.
