The government is taking a major step to end its fuel oil monopoly by allowing private sector participation in the import, refining, and marketing of crude oil products. The Ministry of Power, Energy, and Mineral Resources has drafted a policy framework to facilitate this shift. Initially, private refineries will be required to sell 60% of their fuel oil outputs to the state-owned Bangladesh Petroleum Corporation (BPC) at a government-set price during the first three years.
The remaining 40% can be sold through their own networks, and any surplus can be sold to the BPC. After five years, the proportion will be reviewed. Prominent private companies, including Bashundhara Group, Partex Group, TK Group, and Elite Group, have expressed interest in establishing refineries for this purpose. The move aims to enhance fuel oil supply management and promote private sector participation in the energy sector. Private refiners must meet specific eligibility criteria, including minimum turnover, refining capacity, and land and storage facilities.
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