By Asif Showkat Kallol (Dhaka Bureau)
Social and economic anxieties are mounting in Bangladesh following rapid moves by the interim government to open the country’s refined petroleum market to private companies. Labour unions and energy experts have issued stern warnings, cautioning that loosening state control over such a strategic sector could pose severe risks to the nation’s power, transportation, and agricultural sectors.
The controversy intensified after the Energy and Mineral Resources Division directed the state-owned Bangladesh Petroleum Corporation (BPC) to draft a comprehensive policy within just four days. The proposed framework would grant private firms the authorization to import, store, transport, distribute, and market refined petroleum products directly.
Abrupt Policy Shift and Administrative Reshuffle
The government’s swift execution has raised widespread questions and speculation within the energy industry. Only days prior to the directive, BPC Chairman Rezanur Rahman was abruptly replaced. According to multiple industry sources, the personnel change followed disagreements over proposals to expand private sector involvement in fuel imports and distribution. Although the government has not officially linked the transfer to the policy initiative, the timing has fuelled concern.
At the centre of the debate is Bashundhara Oil and Gas Company Ltd (BOGCL), a subsidiary of one of the country’s largest conglomerates, which has formally applied for permission to import and market diesel, petrol, octane, and furnace oil independently.
* Proposed Import Volumes: Bashundhara proposes to import between 1.5 and 2 million tonnes of diesel annually, alongside 200,000 tonnes of octane, 150,000 tonnes of petrol, and up to 1 million tonnes of furnace oil.
* Market Impact: These volumes would represent a massive share of Bangladesh’s total refined fuel demand- a market historically dominated and safeguarded by the state-owned BPC.
While Bashundhara Group argues that private participation is essential to meet growing energy demand and strengthen long-term energy security, the proposal has drawn fierce resistance over national security and labour rights concerns.
Fierce Protests and Strike Threats from Labour Unions
Trade unions across the petroleum sector have condemned the government initiative, describing it as a direct threat to national energy sovereignty. The Bangladesh Oil and Gas Workers Federation expressed deep concern that transferring control of fuel imports to private operators would progressively erode state authority.
‘We will resist any attempt to hand over this strategic sector to private interests at all costs. If the government does not back down from this suicidal move, nationwide protests will be launched’- Muhammad Ayub, Secretary-General, Bangladesh Oil and Gas Workers Federation.
Union leaders also sharply criticized recent ministry directives requiring prior government approval for granting financial benefits within BPC subsidiaries, arguing that such measures violate national labour laws and undermine collective bargaining rights.
Risks of Market Manipulation and Artificial Shortages
Independent energy analysts have expressed serious doubts regarding the economic fallout of rapid import liberalisation. Professor M. Shamsul Alam, Energy Adviser to the Consumers Association of Bangladesh (CAB), warned that state control is precisely what has kept Bangladesh’s refined petroleum market resilient against the artificial shortages and price manipulation seen in other consumer sectors.
He pointed to historical precedents in Bangladesh’s edible oil, sugar, and liquefied petroleum gas (LPG) markets, where oligopolistic private control frequently led to coordinated supply restrictions and prices exceeding official government caps.
Fuel economists warn that syndicate behavior in the refined petroleum sector would carry far more catastrophic consequences than in edible oil or LPG. Because diesel and other petroleum products directly underpin public transit, agricultural irrigation, manufacturing, and power generation, even a temporary supply disruption could instantly ripple through the economy, driving up food prices and triggering broader inflation.
Hasty Policymaking and the Road Ahead
Sectors experts view the four-day deadline imposed on BPC to formulate the draft policy as highly unreasonable and dangerous. Opening up a strategically vital market without establishing robust competition laws, transparent licensing procedures, and strong regulatory watchdogs could prove counterproductive.
While proponents argue that private investment could boost operational efficiency and alleviate pressure on public finances, experts stress that without a rigorous regulatory framework, the move risks compromising the nation’s energy security and sovereign control.
Asif Showkat Kallol : Works for the German-based online outlet The Mirror Asia as Head of News and is a Contributor at Pressenza-Dhaka Bureau.
