The government is moving to diversify fuel imports as traditional shipping routes face disruption and fears of nationwide shortages grow amid escalating geopolitical tensions in the Middle East.
With Iran’s tight grip on the Strait of Hormuz, a conduit for roughly one-fifth of global oil trade, importing crude oil and liquefied natural gas (LNG) from the Middle East has become a challenge.
With this in mind, the government has requested a sanctions waiver from the United States so that the country can purchase refined fuel from Russia without repercussions. At the same time, officials are negotiating with a range of countries across Asia, Africa, and beyond to diversify fuel sources.
Dhaka wrote to Washington on March 22, requesting permission to import up to 6,00,000 tonnes of refined fuel from Russia or, alternatively, to obtain a waiver for at least two months, according to the Ministry of Power, Energy and Mineral Resources.
“We held discussions with the US State Department and submitted the formal request following their advice. Now we are awaiting their response,” said Monir Hossain Chowdhury, the ministry spokesperson, during a briefing at the Secretariat yesterday.
Officials did not provide details on the procurement mechanism, including whether shipments would come directly from Russia or via a third country.
In the meantime, Dhaka has also been trying to secure additional supplies from regional partners.
Officials said India had earlier committed to supplying around 60,000 tonnes of diesel between January and June under an existing arrangement. However, before the conflict escalated, Bangladesh received only about 5,000 tonnes.
Subsequent communications at ministerial and secretary levels yielded additional shipments. So far, Bangladesh has received three consignments of 5,000 tonnes each through the India-Bangladesh pipeline and another shipment of 7,000 tonnes via the sea route, bringing the total diesel imports from India to roughly 22,000 tonnes.
Meanwhile, two additional shipments -- each estimated at around 6,000 tonnes -- are expected from Indonesia.
As part of exploring new sources to diversify imports, the government has been reaching out to Singapore, Malaysia, Nigeria, Azerbaijan, Kazakhstan, Angola, Australia, and the United States for potential fuel and gas supplies.
“In several cases, we have received positive responses, as two LNG shipments have been confirmed from Angola and Australia,” said the ministry spokesperson.
Authorities have also reached out to Iran to explore possible shipment arrangements, though logistical and security complications naturally remain.
Spokesperson Monir Hossain said, “In the present situation, moving cargo through the Hormuz is extremely risky. In many cases, vessels not carrying the Bangladeshi flag may face restrictions.”
Iran has reportedly indicated that Bangladeshi vessels may be allowed to operate through the strait, though Dhaka is still waiting for formal confirmation.
Officials said they have examined several alternatives, but many have turned out to be economically unviable.
One proposal involved routing fuel through a 150km pipeline to Yanbu in Saudi Arabia. However, additional port charges, transit fees, and handling costs would significantly raise the overall import price.
“All procurement decisions must ultimately be economically viable,” the spokesperson added.
The search for new suppliers has also grown more difficult, as some traditional exporters are raising surcharges on top of already surging oil prices in the global market.
Despite the uncertainties, officials said Bangladesh’s short-term fuel supply remains adequate.
Two shipments scheduled to arrive yesterday and April 3 are expected to bring in about 54,600 tonnes of diesel. Another 7,000 tonnes from India’s Numaligarh Refinery Ltd are due in April.
Additional diesel shipments from Malaysian suppliers are also expected, which could bring total imports in April to a little over 1 lakh tonnes. Besides, the current stock of 1.37 lakh tonnes of diesel is expected to ease the crisis for the time being.
However, officials cautioned that it is too early to predict supply conditions for May and June.
For the time being, the government is able to secure supplies for the immediate future, the ministry spokesperson said, urging people not to panic.
REGULATING DISTRIBUTION
The government is also preparing measures to regulate domestic fuel consumption.
Officials said a digital “fuel pass” system based on QR codes is under consideration to curb panic buying and regulate distribution. Under the proposed system, each registered vehicle would receive a QR code allowing it to purchase a fixed quantity of fuel within a specified period.
Once fuel is collected, the system would prevent the same vehicle from making repeated purchases before the next cycle.
Authorities are thinking about bringing motorcycles under the scheme, as octane consumption has surged in recent weeks. The system would operate through a digital platform recording vehicle registration details, purchase time, and fuel quantities, allowing authorities to monitor distribution more closely.
According to the ministry, the passes would likely be issued centrally and distributed through filling stations to avoid administrative complications.
Authorities said the agriculture sector remains the top priority in fuel allocation, particularly during the irrigation season.
Diesel distribution is being coordinated through lists prepared by agricultural officers at the upazila level to ensure farmers receive adequate supplies.
“So far we’ve not received complaints from any district administration about diesel shortages affecting irrigation,” the energy ministry spokesperson said.
In addition, the government is weighing a set of austerity measures, including extending weekends and introducing work‑from‑home and online classes, he added.
RIPPLE EFFECT
Fuel prices have risen sharply in Nepal, Bhutan, Pakistan, Afghanistan, the Maldives, and Sri Lanka, in some cases by more than 25 percent.
Besides, the Philippines has declared a national energy emergency, while Cuba has recently reported critically low fuel reserves.
By comparison, officials say Bangladesh’s overall fuel management remains relatively stable.
The supply of diesel, which makes up about 63 percent of national consumption, has yet to face any disruption, according to ministry sources.
The main concern lies in the procurement and distribution of octane, which accounts for just over six percent of total demand, they added.
