Jamaat flags fuel monopoly risk
Bangladesh Jamaat-e-Islami has called on the government to immediately suspend plans to allow private companies to import, store, transport, distribute and market refined petroleum products, warning that the proposed policy could concentrate the fuel market in the hands of a few powerful business groups.
At a press briefing on Saturday, the party described the initiative as “a transfer, not reform” and alleged that the government was preparing a new policy to open refined fuel imports and marketing to private-sector operators.
The initiative gained momentum following the appointment of a new Bangladesh Petroleum Corporation (BPC) chairman, who was reportedly instructed to prepare a draft policy on private-sector participation in refined fuel import, storage, transportation, distribution and marketing just four days after assuming office.
Jamaat argued that the move would not necessarily promote competition because the infrastructure and financing required to enter the fuel-import business are available to only a handful of companies.
It said refined petroleum imports require access to deep-sea ports, the Single Point Mooring, large storage terminals and pipeline networks, along with bank financing worth hundreds of millions of dollars.
These requirements, it claimed, mean only three or four major business groups in Bangladesh would have the capacity to enter the market.
The party also rejected suggestions that BPC is inefficient or financially weak, pointing to its reported profits of Tk3,943 crore in fiscal 2023-24 and Tk2,050 crore in 2024-25.
Jamaat alleged that the country’s current fuel shortages were being used to justify greater private-sector involvement.
It referred to a 28 July decision by the Cabinet Committee on Economic Affairs concerning international procurement of refined petroleum products for September-December 2026.
According to the party, the government is seeking to reduce the tender period from 42 days to 10 days, a move it said could discourage or limit participation by major international suppliers.
The party also raised concerns over the potential implications for national energy security, arguing that petroleum products are essential to defence, agriculture, power generation, transport and aviation.
Greater private-sector control over fuel imports and distribution, it said, could reduce the government’s ability to maintain direct control over supplies during emergencies, including war and natural disasters.
Jamaat further alleged that steps were being taken to restrict legal protections for leaders of fuel-sector workers’ organisations, which it said could weaken opposition to the proposed changes.
The party called on the government to clarify whether a draft policy on private-sector fuel imports and marketing is currently being processed by the relevant ministry and what study or assessment supports the initiative.
It also sought disclosure of any applications or proposals submitted by private companies and called for the publication of the draft policy and related documents.
Another key question raised by the party was whether retail fuel prices would continue to be regulated by the Bangladesh Energy Regulatory Commission (BERC) or be determined by private operators.
Jamaat said it was not opposed to a market economy or private investment but called for safeguards before any major change to the existing fuel-import and distribution structure.
It proposed six measures, including an immediate halt to the privatisation initiative, publication of all relevant documents and at least 60 days for public consultation.
It also called for an open parliamentary hearing involving opposition parties, the Consumers Association of Bangladesh, the Centre for Policy Dialogue, university energy experts, labour federations and consumers.
Jamaat proposed independent audits of BPC, professional appointments to its board, mandatory use of e-GP in procurement and quarterly disclosure of fuel import prices and volumes as part of reforms to improve transparency and accountability.
The party also demanded a clear implementation timeline for the second unit of Eastern Refinery (ERL-2) and expansion of strategic fuel storage capacity.
It further called for the withdrawal of recommendations that would curtail legal protections for fuel-sector workers’ organisations.
The demands come as the government considers broader changes to the country’s fuel import and distribution framework amid continuing concerns over supply security and the efficiency of the existing system.
