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Several companies have expressed their inability to supply 11 shipments of fuel scheduled to arrive in Bangladesh in November under government-to-government (G2G) agreements, raising concerns over possible supply disruptions, alternative import arrangements and subsequent contracts awarded at higher premiums.
Questions have also emerged over the local business representation of the companies concerned and the process of awarding new contracts at higher rates. Some industry insiders fear that a particular business group may be attempting to strengthen its influence in the market by taking advantage of the supply shortage. Allegations have also surfaced regarding the business links of Dr Ejazur Rahman, who is reportedly known to have close ties with the Awami League government.
Energy sector insiders warn that delays in the scheduled November shipments could put pressure on meeting the country's fuel demand in December. They say the reasons behind the suppliers' inability to deliver, their relationships with local agents and the alternative procurement arrangements should be thoroughly investigated.
Energy experts say suppliers failing to meet contractual obligations should be held financially accountable for any losses incurred by the state. They also suggest considering contract cancellations and blacklisting of defaulting companies where necessary.
Alongside concerns over the supply shortage, questions have been raised over the awarding of contracts to Vitol Asia for importing diesel and jet fuel at significantly higher premiums.
According to allegations, the premium under long-term agreements was $9.50 per barrel for diesel and $10.15 for jet fuel. However, premiums set for Vitol Asia through an open tender were $16.68 and $17.88 per barrel, respectively.
Under Package-02, Vitol Asia Pte Ltd received the contract to supply 230,000 tonnes of diesel and 40,000 tonnes of jet fuel. According to relevant calculations, the additional expenditure compared with the long-term contract rates would amount to $14.793 million for this package alone. At an exchange rate of Tk123 per dollar, the additional cost would be approximately Tk182 crore.
Questions have also been raised over whether the decisions of the Cabinet Committee on Government Purchase were properly followed in the fuel import process.
In September, the Bangladesh Petroleum Corporation (BPC) finalised a proposal through an open tender to import 605,000 tonnes of diesel and 90,000 tonnes of jet fuel. The proposed premiums were $14.85 per barrel for diesel and $16.49 for jet fuel. However, the Cabinet Committee on Government Purchase did not approve the proposal, citing the high premiums.
Despite this, allegations have emerged that Vitol Asia was subsequently awarded contracts through an open tender process conducted confidentially, at premiums even higher than those in the rejected proposal. This has prompted questions about why a particular company was selected at higher rates despite the availability of lower-priced supply options.
Dr Ejazur Rahman's longstanding business involvement in fuel imports has also come under scrutiny. Allegations suggest that local agencies of six of the 11 international fuel suppliers enlisted with the BPC are owned by him through his companies, Seven Mark and TransBangla Commodities Ltd.
According to sources concerned, the names of his companies have also emerged in connection with the local business representation of several suppliers that expressed their inability to deliver the November shipments. This has prompted calls for an investigation into whether there is any connection between the supply failures and subsequent decisions to purchase fuel through alternative arrangements at higher premiums.
BPC sources said 11 shipments included in the G2G procurement schedule for November could not be supplied as scheduled. These include three diesel shipments and one jet fuel shipment from Unipec Singapore, scheduled for November 19, 21, 22 and 24; a diesel shipment from Indonesia's PT Bumi Siak Pusako scheduled for November 28; a diesel shipment from PetroChina International scheduled for November 10; and a Mogas shipment from OQ Trading Limited of Oman scheduled for November 23.
The shipments were expected to reach Bangladesh in November and were intended to meet part of the country's fuel demand in December.
The key question for industry insiders is why alternative procurement arrangements are being made at higher premiums when G2G suppliers fail to deliver fuel under existing agreements.
Allegations have also been raised regarding the roles of the BPC's director of operations and some officials of the Ministry of Power, Energy and Mineral Resources. Those raising concerns claim that lower-priced suppliers could have been selected from the list of interested companies under the Direct Procurement Method (DPM), but instead, contracts were awarded through open tenders at higher premiums.
They have called for an investigation into whether the additional expenditure is creating opportunities for financial arrangements or the transfer of money abroad.
According to BPC data, contracts were awarded for importing a total of 5.51 million tonnes of refined petroleum products through G2G agreements and open tenders in the 2025-26 fiscal year. Of this amount, nearly 4.3 million tonnes were awarded to companies reportedly having local representatives or business connections with Dr Ejazur Rahman's companies.
Allegations suggest that certain tender conditions are being designed to favour a handful of companies, restricting opportunities for new suppliers to enter the market and increasing the influence of a particular business group in fuel imports.
According to the claims, companies associated with Dr Ejazur Rahman received nearly 78 per cent of the contracts awarded in the 2025-26 fiscal year.
Similar patterns were reportedly found in tender documents for the June-August period. During that period, the BPC initiated the procurement of between 925,000 and 1.15 million tonnes of refined petroleum products under four packages for three months.
Under Package PG-1, Unipec Singapore received the contract to supply 320,000 to 390,000 tonnes of diesel and 70,000 to 90,000 tonnes of jet fuel.
Under PG-2, Vitol Asia was awarded the contract to supply 300,000 to 340,000 tonnes of diesel and 60,000 to 80,000 tonnes of jet fuel.
Trafigura received the contract to supply 150,000 to 200,000 tonnes of furnace oil under PG-3, while Vitol Asia also secured the contract to supply 25,000 to 50,000 tonnes of octane under PG-4.
There is also a precedent for substantial savings in fuel imports through G2G arrangements after the change of government, following reductions in premium rates.
Former BPC Chairman Md Amin Ul Ahsan said the corporation saved approximately $42 million by reducing premiums on G2G-imported petroleum products between July and December 2025.
He said that after taking office, he found that premiums on fuel purchased under G2G arrangements were $2 to $2.50 per barrel higher than those under open tenders. Subsequently, suppliers were asked to provide fuel under G2G agreements at premiums at least one cent lower than those offered through open tenders.
As a result, the BPC saved $42 million over six months, he said.
Asked whether there could be any conspiracy behind the disruption in fuel supplies, BPC Chairman Dr Rafiqul Islam said, "I do not think there could be any kind of conspiracy. However, I will look into the matter."
Asked why companies associated with Ejazur Rahman were being awarded contracts, he said the BPC could not go beyond its list of enlisted suppliers. However, a tender has been invited to enlist new companies, and some new suppliers may be included in the future, he added.
Professor M Shamsul Alam, energy adviser to the Consumers Association of Bangladesh (CAB), said recent developments in the fuel tendering process suggested the influence of syndicates at different levels.
He said companies failing to deliver shipments in accordance with contractual obligations should be made to compensate the state for the resulting financial losses. Blacklisting such companies should also be considered where necessary.
According to the latest BPC information, 11 foreign companies are currently enlisted as petroleum product suppliers. They are Unipec Singapore Pte Ltd, PT Bumi Siak Pusako (BSP)-Japan Indonesia, Petco Trading Labuan Company Ltd (PTLCL) of Malaysia, PTT International Trading Pte Ltd of Thailand, OQ Trading Ltd (OQT) of Oman, PetroChina International (Singapore) Pte Ltd, Emirates National Oil Company (ENOC), Indian Oil Corporation Ltd (IOCL), Numaligarh Refinery Ltd (NRL), Vitol Asia Pte Ltd and Sinochem International Oil (Singapore) Pte Ltd.
These companies supply refined petroleum products to the BPC through G2G agreements and open tenders.
The BPC's liaison office is located on the 10th floor of the BTMC Building in Karwan Bazar, Dhaka. According to relevant sources, TransBangla Commodities and Seven Mark, owned by Dr Ejazur Rahman, have offices on the eighth and seventh floors of the same building, respectively.
Several attempts were made to contact Dr Ejazur Rahman by mobile phone to obtain his comments on the allegations concerning fuel supplies and the awarding of contracts at higher premiums. However, he could not be reached, and no statement was available from him through other channels.
The central question now is whether there is any connection between the failure to deliver the scheduled November fuel shipments and the subsequent decisions to procure fuel through alternative arrangements at higher premiums. The steps taken by the authorities to establish accountability for additional state expenditure and ensure transparency in the fuel import tendering process will also be closely watched.
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