BPC seeks fuel stabilisation fund, measures to ensure supply security

The Bangladesh Petroleum Corporation (BPC) has proposed establishing a fuel stabilisation fund, enhancing domestic refining capacity, and increasing the government's share in the LPG sector to ensure uninterrupted petroleum supply at affordable prices amid volatile global energy markets.

The proposals came at the first meeting of the Parliamentary Standing Committee on Public Undertakings, where the state-owned corporation presented its operational challenges, rising import costs, fuel pricing issues and plans to strengthen national energy security.

Talking to BSS, Petrobangla Chairman Md Abdul Mannan Patwary said, "We will have to increase our fuel oil reserve otherwise we won't be able to cope with any emerging situation." 

To meet growing demand, the government also needs to increase fuel storage capacity, he added.

BPC sources said that rising petroleum prices driven by global conflicts had pushed the corporation into losses since March 2026. It sought necessary financial assistance to keep fuel prices affordable and proposed modernising its supply chain, expediting the commissioning of the Single Point Mooring (SPM) system, and developing a time-bound plan to expand storage capacity. 

Talking to BSS, BPC Chairman Dr Md Rafiqul Islam said the issue of rolling out Fuel Stabilization Fund is still at the conceptual stage as its modalities are yet to be finalized.

"The government is doing necessary groundwork over the matter...if such kind of fund can be created, we'll be able to utilize it in any kind of unexpected situation," he said.

On boosting the fuel capacity storage, Rafiqul said they are also working on the issue to raise such storage capacity further to three months.

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When asked about the modernization initiative of Single Point Mooring (SPM) system, the BPC Chairman said the Notification of Award has been accepted while the contract would be signed in this regard with the awarded firm within 28 days.

The standing committee meeting suggested that the relevant authorities should formulate and present a realistic plan to keep fuel prices at an affordable level for the people.

The committee also recommended that detailed information on current fuel demand, storage capacity and the preparedness of the concerned institutions to meet future demand be presented at its next meeting.