The government is considering a major change in its fuel-import system as the Ministry of Power, Energy and Mineral Resources has sought approval to import fuel oils under the Cost, Insurance and Freight (CIF) method instead of the existing Cost and Freight (CFR) arrangement.
The ministry has already sent a proposal to the Ministry of Commerce, seeking permission for the transition.
Officials concerned believe the move would strengthen energy supply management, reduce logistical and insurance-related risks, and help the Bangladesh Petroleum Corporation (BPC) improve budgeting and procurement efficiency.
According to a letter sent by the Energy and Mineral Resources Division to the commerce ministry, BPC currently imports petroleum products under the CFR method, under which the corporation separately arranges marine insurance coverage for imported fuel cargoes.
Officials said the existing arrangement often creates administrative complications and makes insurance claim settlements difficult in the event of shipping accidents or cargo losses.
Under the proposed CIF system, suppliers would assume responsibility for freight charges and marine insurance until the cargo reaches Bangladeshi ports safely.
The total cost -- including fuel price, freight and insurance -- would be incorporated into a single contract value.
Officials believe the new system would make BPC's import costs more predictable, allowing better annual budget planning and improving overall financial management.
The ministry also argued that international suppliers, because of their large-scale global shipping operations, are generally able to secure more competitive freight and insurance rates than BPC can negotiate independently.
Sources said the proposed shift is expected to attract wider international participation in fuel import tenders, increasing competition and potentially lowering procurement costs.
In its letter, the Power, Energy and Mineral Resources ministry stressed that uninterrupted fuel supply is crucial for Bangladesh's socio-economic development and macroeconomic stability.
To implement the change, the ministry sought clearance under Section 5(Ka)(Aa) of the Import Policy Order 2021-2024, which requires prior approval from the commerce ministry for imports on a CIF basis.
BPC Chairman Md Rezanur Rahman strongly backed the proposal, describing fuel oil as a strategic commodity essential for sustaining economic growth and ensuring energy security.
A senior energy ministry official said the commerce ministry's decision would determine how quickly BPC could restructure its international tendering process and start importing fuel under the CIF model.
The official added that the move would transfer major transit-related risks to international suppliers until the cargo reaches Bangladeshi ports.
He also said the new system could attract more global suppliers, enhance competition in tenders, and help secure better freight and insurance rates, ultimately reducing overall import costs and ensuring smoother fuel supply management.
A commerce ministry official confirmed receipt of the proposal, saying: "We have received the proposal and it is now under scrutiny."
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