Jamaat warns against government move

The government’s move to allow private companies to import, store and market refined petroleum products could replace the existing state monopoly with a private one, Bangladesh Jamaat-e-Islami has warned.

The party alleged that only a handful of large business groups would have the financial strength and infrastructure required to enter the fuel market, raising concerns that the initiative could eventually lead to market monopoly rather than genuine competition.

Jamaat Secretary General Mia Golam Porwar made the remarks at a press conference held at the party’s central office in Moghbazar, Dhaka, on Saturday to present the party’s observations on the government’s proposed new fuel policy.

He said the government was moving to hand over the import, storage, transportation, distribution and marketing of refined petroleum products to private businesses instead of undertaking meaningful reforms in the sector.

“This is not reform; it is a transfer of control,” Porwar said, arguing that the ultimate burden of such a policy could fall on ordinary consumers.

According to him, the Energy and Mineral Resources Division has taken an initiative to formulate a draft policy to open refined fuel imports and related activities to the private sector. He claimed that the initiative was taken within four days of the new chairman of Bangladesh Petroleum Corporation (BPC) assuming office.

Rejecting the government's argument that private participation would increase competition and reduce fuel prices, Porwar said the business requires deep-sea port facilities, large storage terminals, pipelines, single-point mooring facilities and substantial banking capacity.

"Given these requirements, only a few major business groups are likely to have the capacity to enter the market," he said, warning that a private monopoly could emerge in place of the existing state monopoly.

Jamaat also rejected the argument that BPC should be privatised because of inefficiency and financial losses. Parwar said BPC earned Tk 3,943 crore in profit in the 2023-24 fiscal year and Tk 2,050 crore in 2024-25, although the corporation incurred losses of Tk 1,983 crore and Tk 7,087 crore in 2021-22 and 2022-23 respectively.

He also raised questions over the government's decision to shorten the deadline for international tenders for refined petroleum imports.

Porwar said the Cabinet Committee on Economic Affairs on July 28 decided to reduce the tender period for refined fuel imports for September-December 2026 from 42 days to 10 days.

He warned that the shortened timeframe could discourage major international suppliers from participating, creating opportunities for a limited number of bidders to influence the market and potentially form a syndicate.

He questioned whether private companies would ensure fuel supplies in remote and less profitable areas during war, natural disasters or international supply disruptions.