Govt to import another 300,000 tonnes of diesel to meet ‘emergency demand’

The government has decided to import an additional 300,000 tonnes of refined diesel to mitigate the fuel supply crisis triggered by the Iran war.

A media statement from the finance ministry issued on Wednesday said the Cabinet Committee on Economic Affairs granted in-principle approval for the import to "meet emergency demand”.

The government faced significant pressure concerning fuel oil supplies after shipping through the Strait of Hormuz effectively ceased due to the Middle East conflict.

Despite efforts to maintain supplies by importing from various sources, long queues have been visible at petrol stations for over a month.

Global energy markets also saw a surge in prices, leading the government to consider a potential price hike in May.

US President Donald Trump, however, announced a two-week ceasefire following Iran's agreement on Tuesday to reopen the Strait of Hormuz.

Consequently, global oil prices have retreated below $100.

Despite this drop, prices remain higher than they were prior to the start of the war on Feb 28, when oil was trading at approximately $70 per barrel.

Amidst this volatility, the government decided on Saturday to import 100,000 tonnes of refined diesel from Kazakhstan.

The finance ministry confirmed the decision following an emergency meeting of the Cabinet Committee on Government Purchase held on that evening.

During that meeting, the Ministry of Power, Energy and Mineral Resources proposed importing 1.7 million tonnes of oil to address the "emergency energy demand" arising from the unstable geopolitical situation.

The proposal suggested procuring the fuel via the direct purchase method from the United Arab Emirates, Kazakhstan, and Oman.

Of this, 500,000 tonnes from Kazakhstan had earlier received approval from the economic affairs committee, although the purchase committee has so far approved 100,000 tonnes.

The remaining 1.6 million tonnes will be procured based on "requirement”.

Following those decisions, Wednesday’s meeting of the economic affairs committee sanctioned the import of another 300,000 tonnes of diesel.

The committee also gave in-principle approval for the Bhola-Barishal bridge project, which is set to become the country’s longest bridge at around 11km.

A feasibility study for the bridge over the Tetulia River was completed between 2022 and 2024, and the project had been awaiting approval from the committee.

It was previously included in the Annual Development Programme (ADP) and will now proceed to final approval under the programme.