An old business network allegedly influential in Bangladesh’s fuel-import sector has come under renewed scrutiny, with questions being raised over its continued dominance in Bangladesh Petroleum Corporation’s (BPC) procurement process despite changes in government.
An investigation has alleged that the network, reportedly developed during the previous Awami League government through the connections of former state minister for power, energy and mineral resources Nasrul Hamid Bipu and Dr Ejajur Rahman, continues to maintain significant influence over the fuel-import market.
According to the investigation, the network has allegedly retained control over major business interests while creating obstacles for new suppliers seeking to enter BPC’s fuel-import market.
BPC data reportedly show that 11 international companies are currently listed as suppliers of refined petroleum products. Of these, at least six allegedly have local representation connected to two companies owned by Dr Ejajur Rahman - Seven Mark and Transbangla Commodities Ltd.
The investigation found that Unipec Singapore, PT Bumi Siak Pusako (BSP)-Zapin, Petco Trading Labuan, PTT International Trading, Vitol Asia and Sinochem International Oil have business or representation links with the two local companies.
Although the international suppliers are separate entities, the investigation alleged that a substantial part of their local representation is connected to the same business circle. BPC tender and work-order data have also raised questions about the network’s position in the market.During FY2025-26, BPC reportedly awarded contracts for importing around 5.51 million tonnes of refined petroleum products through government-to-government arrangements and open tenders. Around 4.3 million tonnes, or nearly 78%, allegedly went to companies whose local representation or business connections were linked to Dr Ejaj’s companies.
The latest tender process also reportedly showed a similar pattern. Under four packages for the June-August period, BPC sought to import up to 1.15 million tonnes of refined petroleum products. Unipec Singapore received orders for diesel and jet fuel under one package, while Vitol Asia received orders under two packages. Trafigura received an order for furnace oil.
The potential government expenditure for importing up to 1.15 million tonnes of fuel under the four packages was estimated at more than Tk17,000 crore.
The investigation also highlighted concerns over supply disruptions during recent tensions in the Middle East. Two international suppliers with local representation linked to Dr Ejaj reportedly informed BPC that they were unable to deliver some scheduled fuel orders.
Industry stakeholders said heavy dependence on a small number of suppliers could increase risks during international crises.
The investigation further pointed to a sharp rise in fuel premiums between two tender periods. Unipec’s diesel premium reportedly rose from $4.72 per barrel in the January-June period to $13.25 in the June-August tender. Its jet fuel premium increased from $6.86 to $14.86. Vitol Asia’s diesel premium rose from $4.78 to $13.18, while its jet fuel premium increased from $6.88 to $14.78.
BPC-related sources said the increase was partly justified by higher shipping, insurance and supply risks resulting from the Middle East conflict. However, questions remain over whether dependence on a limited number of suppliers also contributed to the higher premiums.
The investigation also alleged that several former BPC and affiliated oil-company officials joined Dr Ejaj’s companies after retirement. At least 10 such former officials were reportedly identified. Energy-sector stakeholders have called for greater transparency in fuel procurement and wider supplier participation to reduce concentration risks. Consumer Association of Bangladesh energy adviser Professor M Shamsul Alam said any attempt to influence tender processes or restrict competition would be a serious issue. He said that if specific evidence supported the allegations, legal action should be taken against those responsible. The allegations have renewed calls for BPC to diversify its supplier base, strengthen procurement transparency and ensure greater competition in the country’s strategic fuel-import market.
