Dhaka:The Bangladesh Petroleum Corporation (BPC) has suggested the creation of a fuel stabilisation fund and plans to enhance domestic refining capacity and increase government involvement in the LPG sector. These measures aim to ensure a stable and affordable petroleum supply in response to fluctuating global energy markets.
According to Bangladesh Sangbad Sangstha, the proposals were discussed at the first meeting of the Parliamentary Standing Committee on Public Undertakings. During this meeting, BPC highlighted challenges such as rising import costs and fuel pricing issues, while outlining plans to bolster national energy security.
BPC officials reported that global conflicts have driven up petroleum prices, causing financial losses for the corporation since March 2026. To mitigate these losses, BPC is seeking financial assistance and plans to modernize its supply chain, expedite the commissioning of the Single Point Mooring (SPM) system, and expand storage capacity.
BPC Chairman Dr. Md Rafiqul Islam mentioned that the fuel stabilisation fund is still in the conceptual phase, with modalities yet to be finalized. He stated that if established, the fund could be used to manage unexpected situations. Additionally, BPC is working on increasing fuel storage capacity to cover three months of demand.
The committee recommended that authorities formulate a realistic plan to maintain affordable fuel prices and present detailed information on current and future fuel demand and storage capacities in subsequent meetings.
The government previously adjusted the price of diesel, increasing it by Tk 20 per litre, resulting in a retail price of Tk 135, due to significant losses. BPC estimated a diesel loss of Tk 54.62 per litre and projected losses of Tk 840 million daily, Tk 25 billion monthly, and Tk 300 billion annually under current market conditions.
The corporation emphasized the importance of rapidly commissioning the SPM system to reduce costs and time associated with receiving petroleum products. Additionally, BPC proposed increasing domestic refining capacity, expanding the pipeline network, and automating depots to improve operational efficiency.
BPC operates through subsidiaries such as Eastern Refinery PLC and three petroleum marketing companies. It also proposed increasing strategic fuel storage to cover 90 days of demand and strengthening the distribution network to safeguard against international supply disruptions.
Manual systems for receiving, storing, and distributing petroleum products were identified as challenges, prompting BPC to propose automation and modernization efforts. The corporation also supports expanding the government's role in the LPG sector, increasing refining capacity, and enhancing the management of fuel imports, storage, and distribution.
The BPC outlined the existing petroleum price determination framework, which involves the energy and mineral resources division and the Bangladesh Energy Regulatory Commission. Despite an automatic pricing mechanism introduced in March 2024, domestic prices were not fully adjusted to reflect international increases in 2026, leading to financial losses for the corporation.
The standing committee meeting concluded with a focus on operational and financial reforms to improve fuel supply security and BPC's ability to handle international price fluctuations.