Jamaat sees 'license for plundering' in energy sector privatization

Bangladesh Jamaat-e-Islami has strongly criticized the government's initiative to open up the import, storage, and marketing of refined petroleum oil to the private sector.

The party on Saturday claims that although the government cites increasing competition, if this initiative is implemented, the energy market could fall under the control of a few influential private conglomerates.
Secretary General Mia Golam Parwar expressed this concern at a press conference organized at Jamaat's central office in Maghbazar, Dhaka, on Saturday afternoon. The press conference was arranged to present the party's stance and observations regarding the government's move to formulate a new energy policy.

In his written statement, Golam Parwar said that instead of reforming the energy sector, a process has begun to hand over its control to private groups. As a result, ordinary consumers may ultimately have to bear additional costs.

He informed that the Energy and Mineral Resources Division has taken the initiative to draft a policy to allow the private sector to participate in the import, storage, transportation, distribution, and marketing of refined petroleum oil. He also claimed that the order to prepare this draft was issued within just four days of the new BPC chairman assuming office.

Golam Parwar commented, "This is not reform, this is a handover. This is not competition, this is a license for corruption and plunder."

The Jamaat leader also rejected the government's argument that allowing the private sector in oil imports would create competition in the market and lower prices. According to him, this business requires deep-sea ports, single point mooring, large tank terminals, pipelines, and substantial banking capacity. As a result, in reality, only a very few large industrial groups will be able to enter this sector.

In this situation, he remarked that there is a risk of breaking the state monopoly only to create a new private monopoly.

Jamaat also rejected the argument for privatization that portrays Bangladesh Petroleum Corporation (BPC) as a loss-making and inefficient entity. According to figures provided by the Secretary General, BPC made a profit of Tk 3,943 crore in the 2023-24 fiscal year and Tk 2,050 crore in the 2024-25 fiscal year. Previously, in the 2021-22 and 2022-23 fiscal years, the corporation suffered losses of Tk 1,983 crore and Tk 7,087 crore respectively.
Golam Parwar also opposed viewing the current energy crisis as a management failure of BPC. He claimed that global market conditions and geopolitical crises are primarily responsible for this. He pointed out that despite rising prices in the global market, the government did not increase fuel prices to reduce pressure on domestic consumers, which has resulted in BPC incurring losses of approximately Tk 78 crore per day – a fact that the Energy Minister himself had informed Parliament about.

Meanwhile, Jamaat also raised questions about the decision to shorten the timeline for international tenders. Golam Parwar said that amidst the Middle East war and supply constraints, the Cabinet Committee on Economic Affairs decided on July 28 to reduce the tender period from 42 days to just 10 days for the international open tender for importing refined petroleum oil for the September–December 2026 term.

He expressed concern that if tenders are invited and processed in such a short time, the participation of major international suppliers could decline. This could reduce competition, leading to a bidder crisis, procurement of oil at higher prices, and opportunities for syndicates.

"Speed and transparency are not contradictory. But here, in the name of speed, transparency is being sacrificed," he said.

Jamaat stated that the country has an annual fuel oil market of approximately Tk 30,000 crore. Golam Parwar commented that if this market falls under the control of a few entities, even a small additional profit per litre could translate into thousands of crores of extra revenue annually.

The party also called for fuel oil to be viewed not as a mere commercial commodity but as a vital component of the national economy and security. Golam Parwar said that energy is directly linked not only to agriculture, electricity, transport, and aviation but also to national security.

He also highlighted the fact that the country currently has only one refinery (Eastern Refinery) and limited fuel storage capacity. He raised the question: in times of war, disaster, or major crises, how would the state compel private companies to ensure fuel supply? He also noted that it is unclear whether private entities would supply fuel to remote and unprofitable areas in the same manner.

At the press conference, Jamaat also expressed concern over the legal protection of labour organisations in the energy sector. Golam Parwar claimed that a recommendation has been made to repeal Section 187 of the Labour Act concerning leaders of energy sector workers' unions. Jamaat also cited the opinions of various experts in support of their stance. The Secretary General quoted Dr. Khondaker Golam Moazzem, Research Director of CPD, saying that since energy is an essential commodity, it would be in the public interest to keep it under government control with limited profit margins rather than turning it into a profit-driven sector.
He also mentioned that Professor Dr. M. Shamsul Alam, energy advisor to the Consumers Association of Bangladesh (CAB), has long been advocating for considering energy as a service sector rather than a profit-making one. Similarly, citing the concerns of Dr. Moshahida Sultana, Associate Professor at the University of Dhaka, Golam Parwar said that if the private sector is introduced, there is a risk of syndicates forming in the fuel oil market, just as has happened in the LPG sector.

Jamaat claims that the process has already begun through the amendment of the bunkering policy on August 2, which allowed the private sector to import marine fuel.

Along with demanding a halt to the privatization initiative, Jamaat-e-Islami has demanded public participation in formulating the policy. They have called for publishing the draft policy and related documents, seeking public opinion for at least 60 days, holding open hearings under the Parliamentary Standing Committee, and reforming BPC instead of privatizing it.

Additionally, Jamaat has demanded an independent audit of BPC, the appointment of professionals to its board, and making e-GP (electronic government procurement) mandatory for fuel oil purchases. They have also demanded the disclosure of the price and quantity of imported fuel oil every three months, along with expediting the construction of the second unit of Eastern Refinery and projects to increase strategic storage capacity. They also called for withdrawing all recommendations that reduce legal protections for workers.

Golam Parwar said, "Jamaat-e-Islami is not opposed to the market economy or private investment. Their objection is to the process of handing over a strategically important state sector to private groups without accountability. Competition does not mean transferring a monopoly. Reform means repairing the institution, not selling it. Energy security means state control, not group control."