Energy Crisis Demands Caution as Private Sector Seeks Larger Role in Fuel Imports
Bangladesh is facing a deepening energy crisis that requires urgent and coordinated responses. Experts at a recent seminar organised by the Forum for Energy Reporters Bangladesh (FERB) at Dhaka Club stressed the need for stronger focus on domestic resources, renewable energy, and meaningful reforms in the energy sector.
Speakers highlighted the importance of reducing dependence on imported fuels, developing neglected gas fields, improving energy efficiency, and encouraging private-sector investment — but only under a strict regulatory framework.
Domestic gas production has declined significantly from its peak, while reliance on imported LNG continues to grow. Experts warned that without accelerated exploration and better institutional capacity, the country will remain vulnerable to supply shocks.
Private Participation in Refined Fuel
Against this backdrop, the government is preparing a policy to allow private companies to import, store, transport, distribute and market refined petroleum products. Power, Energy and Mineral Resources Minister Iqbal Hasan Mahmood has clarified that the initiative is not intended to benefit any particular company.
“We are not doing this to give benefits to a particular company. Rather, we are making a general policy so that everyone can do business,” the minister said.
He emphasised that qualified private operators would be allowed to compete alongside state-owned distributors, with the aim of improving supply security and introducing competition.
Bashundhara’s LPG Performance Raises Questions
One of the companies that has applied for a significant role in refined fuel imports is Bashundhara Oil and Gas Company Ltd. The group has sought permission to import up to 3.35 million tonnes of refined products annually, including diesel, octane, petrol and furnace oil.
However, the recent performance of Bashundhara’s LPG business raises important questions about operational capacity.
Bashundhara LP Gas Ltd, once among the top importers with a 15.5 percent share in FY2023, saw its share fall to 5.19 percent in FY2024 and 3.68 percent in FY2025. In the early months of 2026, no direct imports were recorded under its name.
Company officials have attributed the decline to Bangladesh Bank restrictions that prevented the opening of new Letters of Credit due to banking and compliance issues involving another concern within the Bashundhara Group. The last LPG cargo arrived in March 2025.
While the company maintains a retail distribution network, the prolonged inability to import fresh cargo has reduced its role as a major supplier, allowing other operators to expand their market share.
Need for Careful Evaluation
The contrast is noteworthy. A group currently facing documented difficulties in financing regular LPG imports is simultaneously seeking to enter the larger and more complex refined fuel market.
Energy security depends on consistent access to financing, reliable logistics and proven operational strength.
Opening the refined fuel sector to private participation may help address supply challenges and reduce pressure on the state system.
However, any such policy must be based on transparent assessment of applicants’ financial health, regulatory compliance and demonstrated capacity.
As experts at the FERB seminar underlined, private investment is necessary — but only under clear rules and effective oversight.
In the midst of an energy crisis, decisions on strategic fuel supply should prioritise proven capability and national interest over past market presence alone.
