The government plans to import around 1.53 million tonnes of refined petroleum products worth an estimated Tk 161 billion during the second half of 2026 under government-to-government (G2G) arrangements.
The initiative is expected to ensure uninterrupted domestic fuel supplies amid continued volatility in global energy markets, sources said.
Under the proposal, the Bangladesh Petroleum Corporation (BPC) plans to procure 1.525 million tonnes (around10 per cent) of diesel, jet fuel, furnace oil, gasoline and marine fuel from six state-owned suppliers in China, India, Indonesia, the United Arab Emirates and Oman.
The total procurement cost has been estimated at Tk 160.88 billion (about US$1.30 billion), based on a reference fuel value of US$1.19 billion and a negotiated premium of US$110.32 million.
The calculation used an exchange rate of Tk 123.75 per US dollar, in line with Sonali Bank's reference rate on July 7, 2026.
A senior official said the procurement would be financed through BPC's own sales proceeds alongside bank borrowing.
Of the total volume, 915,000 tonnes will be diesel, accounting for the largest share of the import bill at Tk 102.47 billion.
The remaining imports include 250,000 tonnes of Jet A-1 aviation fuel valued at Tk 33.55 billion, 200,000 tonnes of furnace oil worth Tk 11.94 billion, 130,000 tonnes of gasoline (Octane 95) costing Tk 10.44 billion, and 30,000 tonnes of marine fuel valued at Tk 2.40 billion.
The fuel will be sourced through bilateral negotiations with overseas suppliers. Negotiations were held between June 19 and 22, during which import volumes and premiums were finalised.
Representatives from nine state-owned oil companies-OQT, PTLCL, PTTT, ENOC, PetroChina, BSP, Unipec, IOCL and KPC Trading Ltd.-participated either physically or virtually. KPC Trading Ltd. informed BPC that it could not attend the negotiations.
According to the proposal, Kuwait-based KPC Trading Ltd., although invited, informed the government that it would not be able to participate in the current procurement round.
Officials said the procurement cost has risen because of persistent uncertainty in international oil markets, particularly geopolitical tensions in the Middle East.
The proposal noted that higher war-risk insurance premiums, increased freight charges resulting from longer and safer shipping routes, and elevated vessel charter costs have all contributed to the higher import cost.
The final payment for each cargo will be determined using the prevailing Mean of Platts Arab Gulf (MOPAG) and Mean of Platts Singapore (MOPS) benchmark prices applicable on or around the respective bill of lading dates, in accordance with the negotiated contracts.
Bangladesh's demand for refined petroleum products is projected to exceed 6.60 million metric tonnes in 2026. The government imports fuel in two phases each calendar year-January to June and July to December.
Under procurement guidelines introduced in December 2015, BPC imports 50 per cent of its refined petroleum requirements through long-term G2G contracts and the remaining 50 per cent through international competitive bidding.
The procurement plan had earlier received policy approval from the Advisory Council Committee on Economic Affairs in October last year.
For the first half (January-June) of 2026, the government approved the import of 1.47 million tonnes through G2G arrangements, including 90,000 tonnes of diesel from India's Numaligarh Refinery Limited (NRL) via the India-Bangladesh Friendship Pipeline.
However, actual G2G imports during the period stood at around 1.24 million tonnes, while another 1.387 million tonnes was imported through international tenders.
During the first six months of the year, BPC supplied approximately 4.48 million tonnes of petroleum products across the country, reflecting sustained domestic demand.
Bangladesh currently imports refined petroleum products on a G2G basis from Oman Trading International (OQT), PT Pertamina (PTLCL), PTT Public Company (PTTT), Emirates National Oil Company (ENOC), PetroChina, Brunei Shell Petroleum (BSP), Unipec, Indian Oil Corporation Ltd. (IOCL) and KPC Trading Ltd., while diesel is also sourced from Numaligarh Refinery Limited through the cross-border pipeline.
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