Govt cuts tender submission time to 10 days for fuel imports amid global uncertainty
The new provision will apply only to the import of refined fuel oil by Bangladesh Petroleum Corporation (BPC).
The government has decided to reduce the tender preparation and submission period for fuel imports from 42 days to just 10 days under the public procurement rules.
Amid global uncertainty in the energy market triggered by the ongoing war involving Iran, the United States, and Israel, the government has been importing fuel through direct procurement on an emergency basis. However, concerns over transparency in direct purchases have prompted the government to move towards faster international competitive bidding.
The decision to curtail the tender timeline has come to facilitate this.
The decision received in-principle approval today (21 April) at a meeting of the Cabinet Committee on Economic Affairs, chaired by Finance Minister Amir Khosru Mahmud Chowdhury. The provision will apply only to the Bangladesh Petroleum Corporation (BPC) for importing refined fuel.
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Under the direct procurement method, the government negotiates directly with suppliers to finalise prices, without allowing competition from other vendors. In contrast, international open tenders enable multiple suppliers to bid, allowing the government to secure fuel at more competitive rates.
Public procurement expert and former secretary Md Faruque Hossain said that existing procurement laws already allow shortening the 42-day timeline in emergency situations.
"Based on that provision, the government can reduce the timeframe to 10 days," he said, adding that if bids are not submitted within the shortened period, the deadline may need to be extended.
Additional fuel imports approved
To address fuel shortages, the Cabinet Committee on Economic Affairs has also approved proposals to purchase an additional 2 lakh tonnes of diesel and octane through direct procurement.
Meanwhile, the Cabinet Committee on Public Purchase approved the import of 1,75,000 tonnes of fuel, including 1,50,000 tonnes of diesel and 25,000 tonnes of octane.
According to the finance ministry, the approvals were granted at meetings of the two committees on Monday.
Of the approved purchases, 50,000 tonnes of diesel and 25,000 tonnes of octane will be imported from DBS Trading House FZCO at a cost of Tk1,023.61 crore and 1lakh tonnes of diesel will be imported from Archer Energy LLC at a cost of Tk674.60 crore.
Additionally, the economic affairs committee has given in-principle approval to import another 1 lakh tonnes of diesel from Archer Energy LLC and 1 lakh tonnes from Mazda Oil Co Ltd.
As per rules, all government purchases – domestic or international – must first receive approval from the Cabinet Committee on Economic Affairs before being finalised by the Cabinet Committee on Public Purchase.
