Govt okays import of 3 lakh tonnes of diesel amid Middle East tensions

The government has approved a plan to import three lakh tonnes of diesel to meet urgent energy demand amid ongoing geopolitical instability in the Middle East.

The approval was given on Wednesday at a meeting of the Cabinet Committee on Economic Affairs held at the Jatiya Sangsad Bhaban, chaired by Finance and Planning Minister Amir Khasru Mahmud Chowdhury.

According to finance ministry sources, three different proposals were placed before the committee to ensure an uninterrupted fuel supply. The proposals involve procuring diesel through the direct purchase method from international suppliers in a bid to respond quickly to the evolving global energy situation.

Under the approved proposals, the Energy and Mineral Resources Division will import a total of three lakh tonnes of diesel from three international suppliers. These include one lakh tonnes of EN 590 (10 ppm sulphur) diesel from Year Energy AG, one lakh tonnes of 10-50 ppm diesel from K and R International Trading Company, and one lakh tonnes of EN 590 (10 ppm sulphur) diesel from M/S Sikder International.

All imports will be carried out through direct procurement.

Earlier, on 4 April, the Cabinet Committee on Government Purchase, also chaired by Amir Khasru, approved the emergency import of one lakh tonnes of diesel and two LNG cargoes to deal with the energy crisis.

Since 28 February, geopolitical instability in the Middle East, particularly following joint strikes by the United States and Israel on Iran, has significantly disrupted global energy supplies. In response, Iran imposed restrictions on vessel movement through the Strait of Hormuz, a key global shipping route for oil.

As a result, international fuel markets have experienced sharp volatility in prices, premiums, and transportation costs. At the same time, heightened security risks have prompted several exporting countries to limit supply, further tightening the global energy market.

However, on Wednesday, the US and Iran reached a two-week ceasefire agreement, bringing temporary relief to global markets.