Bangladesh Petroleum Corporation
Corporate brand
UnclaimedBangladesh's state petroleum corporation responsible for importing, distributing, and marketing petroleum and related fuel products.
Last updated August 24, 2026
Overview
Bangladesh Petroleum Corporation (BPC) is a government petroleum agency responsible for securing, importing, distributing, and marketing crude oil, refined fuels, lubricants, liquefied petroleum gas, bitumen, and other petroleum products in Bangladesh. It was established in 1976 under a presidential ordinance during the early period of Bangladesh's development of a national energy administration. The corporation operates under the Ministry of Power, Energy and Mineral Resources and functions as a central institution in the country's downstream petroleum system. BPC's responsibilities extend beyond ordinary commercial fuel distribution. It coordinates the procurement of imported crude oil and refined petroleum, supplies fuel to transport, industrial, agricultural, power-generation, aviation, and public-sector customers, and works through affiliated companies that refine, store, blend, distribute, and market petroleum products. Its corporate network includes Eastern Refinery Limited, the country's principal refining affiliate, as well as Padma Oil Company Limited, Jamuna Oil Company Limited, Meghna Oil Company Limited, Eastern Lubricants Blenders Limited, Standard Asiatic Oil Company Limited, LP Gas Limited, and the Asphaltic Bitumen Plant. The corporation has historically handled substantial import volumes. A reported annual import level reached as much as 29 million barrels in 2009, reflecting Bangladesh's dependence on imported crude and refined petroleum to meet domestic demand. BPC therefore has a strategic role in national energy security and in maintaining continuity of fuel supplies during periods of global price volatility, foreign-exchange pressure, transport disruption, or domestic emergency. BPC's financial position has also been shaped by the government's administered pricing system. The 2017 Economic Survey identified it as the most profitable state-owned enterprise, reporting more than 90 billion taka in profit for the 2015–16 fiscal year. Profitability has nevertheless varied with international oil prices, domestic retail pricing, inventory costs, exchange rates, and the timing of government price decisions. In February 2018, BPC sought approval for a formula that would automatically adjust domestic oil prices in response to international market movements. The proposal was motivated by concerns that regulated domestic prices could create losses for the corporation and encourage cross-border fuel smuggling. The corporation has also faced the operational consequences of public-sector receivables and extraordinary demand shocks. In December 2017, BPC decided to stop supplying fuel to the state-owned airline Biman Bangladesh Airlines on credit after the airline's outstanding dues exceeded 16 billion taka. During the COVID-19 lockdown in Bangladesh, petroleum sales reportedly fell by about 60 percent in 2020. BPC responded by using privately owned storage tanks because its own facilities were close to capacity, illustrating the importance of flexible storage arrangements in a market where demand and import schedules can change rapidly. Infrastructure modernization has become another important area of activity. Bangladesh developed a Single Point Mooring project connected to Eastern Refinery by an approximately 120-kilometer pipeline. The project is intended to allow imported petroleum to be transferred more directly from deep-sea vessels, reducing handling complexity and improving the efficiency of crude-oil movement to the refinery. Together with its refining, storage, distribution, and marketing affiliates, BPC remains a central state instrument for managing Bangladesh's petroleum supply chain.
History
Bangladesh Petroleum Corporation was founded in 1976 through a presidential ordinance to organize the import and distribution of crude oil, fuel, lubricating oil, and other petroleum products in Bangladesh. Its creation reflected the need for a national institution capable of managing a petroleum supply chain in a newly independent and developing country. The corporation was placed under the Ministry of Power, Energy and Mineral Resources and became a central public-sector institution for downstream energy administration. BPC's operating model developed around coordination rather than a single consumer-facing retail brand. It imports crude oil and refined petroleum, supplies domestic markets, and works with affiliated companies responsible for refining, marketing, storage, blending, liquefied petroleum gas, and bitumen. Eastern Refinery Limited serves as the principal refining affiliate, while Padma Oil Company Limited, Jamuna Oil Company Limited, and Meghna Oil Company Limited are important distribution and marketing companies. Other associated entities include Eastern Lubricants Blenders Limited, Standard Asiatic Oil Company Limited, LP Gas Limited, and the Asphaltic Bitumen Plant. The corporation's scale has been closely connected to Bangladesh's growing transport, industrial, agricultural, electricity, aviation, and household energy needs. In 2009, its annual import level was reported to have reached as much as 29 million barrels. This dependence on imported petroleum has made BPC important to national energy security and exposed it to international crude prices, exchange-rate movements, shipping costs, foreign-exchange constraints, and domestic fuel-price policy. BPC was described in the 2017 Economic Survey as the most profitable state-owned enterprise, with reported profit exceeding 90 billion taka in the 2015–16 fiscal year. However, its financial performance has not eliminated operational and policy pressures. In December 2017, the corporation stopped supplying Biman Bangladesh Airlines on credit after the airline's outstanding dues reportedly crossed 16 billion taka. In February 2018, BPC asked the government to authorize an automatic formula for setting domestic oil prices against international prices. It argued that fixed or slow-moving domestic prices could create losses and increase incentives for fuel smuggling near the border with India. In 2020, the government changed the rules governing surplus funds held by state-owned enterprises. BPC transferred 50 billion taka to the national treasury under the new arrangement. The same year, the COVID-19 lockdown caused petroleum sales to fall by approximately 60 percent. Because BPC's own storage tanks were close to capacity despite the demand decline, it arranged to use private oil tanks, demonstrating the logistical challenges created when import arrivals, storage utilization, and domestic consumption move out of alignment. Infrastructure development has aimed to improve the efficiency and resilience of the national petroleum system. Bangladesh established a Single Point Mooring project for receiving imported oil from deep-sea vessels and connected it to Eastern Refinery through a pipeline of approximately 120 kilometers. The system is intended to reduce the complexity of transferring imported crude and improve the movement of petroleum to the refinery. Today, BPC remains an active government petroleum corporation rather than a conventional publicly listed consumer brand. Its importance lies in its national mandate: ensuring the availability of petroleum products, coordinating affiliated companies, managing strategic import and distribution functions, and supporting the broader energy and transport economy of Bangladesh.
- 2020
Surplus funds transferred to the national treasury
[1]BPC deposited 50 billion taka with the national treasury following a legal requirement covering surplus or idle funds held by state-owned enterprises.
- 2020
Pandemic demand shock managed through private storage
[1]A reported 60 percent sales decline during the COVID-19 lockdown led BPC to use privately owned oil tanks because its own storage facilities were near capacity.
- 2018
Proposal for international-market-linked fuel pricing
[1]BPC sought permission to introduce a formula that would automatically adjust domestic petroleum prices in line with international market prices.
- 2017
Recognized as the most profitable state-owned enterprise
[1]The 2017 Economic Survey identified BPC as Bangladesh's most profitable state-owned enterprise, reporting more than 90 billion taka in profit for fiscal year 2015–16.
- 2017
Credit fuel supply to Biman Bangladesh Airlines halted
[1]BPC stopped selling fuel to Biman Bangladesh Airlines on credit after the airline's unpaid balance reportedly exceeded 16 billion taka.
- 2009
Large-scale petroleum imports recorded
[1]BPC's annual import level was reported to have reached as much as 29 million barrels.
- 1976
Corporation established
[1]Bangladesh Petroleum Corporation was established by presidential ordinance to import and distribute crude oil, fuel, lubricating oil, and petroleum products in Bangladesh.
Products and positioning
A strategic state-owned petroleum institution combining national fuel-import responsibility with downstream refining, storage, distribution, and marketing coordination.
Petroleum feedstock
Crude oil
BPC imports and coordinates the domestic supply of crude oil for refining and downstream distribution. Crude procurement is a core part of its national energy-security role and is linked to the operating requirements of Eastern Refinery Limited.
Fuel products
Refined petroleum fuels
The corporation manages the import, distribution, and marketing of refined fuels used by transportation, industry, agriculture, electricity generation, aviation, and other domestic sectors. Specific products include diesel, petrol, kerosene, and jet fuel.
Lubricating oils
Lubricants
Lubricating oils are part of BPC's petroleum portfolio and are supported by affiliated blending and distribution operations, including Eastern Lubricants Blenders Limited.
Gas fuel
Liquefied petroleum gas
BPC's corporate network includes LP Gas Limited, supporting the state's role in the supply and distribution of liquefied petroleum gas for household and commercial energy use.
Industrial petroleum product
Bitumen
Bitumen is included in BPC's downstream product portfolio through the Asphaltic Bitumen Plant and is used primarily in road construction and related infrastructure applications.
Brand decisions
2020
Use of privately owned petroleum storageStrategyBackground
COVID-19 lockdown measures reduced petroleum sales by approximately 60 percent, while BPC's own storage tanks were close to full capacity.
Action taken
BPC decided to use private oil tanks for storage.
Aftermath
The arrangement gave BPC additional flexibility to manage inventories during an exceptional demand contraction.
2018
Proposal for automatic international-market-linked fuel pricesPrice changeBackground
BPC was concerned that domestic prices that did not reflect international petroleum costs could cause losses and encourage fuel smuggling along the Indian border.
Action taken
The corporation sought government permission to determine oil prices using a formula that would automatically track international market prices.
Aftermath
The proposal represented an effort to make domestic fuel pricing more responsive to import costs, although the available reference does not establish the final implementation outcome.
2017
End of credit fuel sales to Biman Bangladesh AirlinesStrategyBackground
Biman Bangladesh Airlines had accumulated unpaid fuel bills reportedly exceeding 16 billion taka by December 2017.
Action taken
BPC decided not to continue supplying petroleum products to the state-owned airline on credit.
Aftermath
The decision highlighted BPC's exposure to public-sector receivables and its willingness to limit further credit in order to protect collections.
Outstanding dues. More than 16 billion taka (December 2017)
- Development of the Single Point Mooring and refinery pipeline systemStrategy
Background
Bangladesh sought to improve the efficiency of transferring imported petroleum from deep-sea vessels into the national refining system.
Action taken
A Single Point Mooring project was connected to Eastern Refinery Limited through an approximately 120-kilometer pipeline.
Aftermath
The infrastructure is intended to streamline crude-oil handling and strengthen the efficiency of petroleum imports and refinery supply.
Recent events
- 2020
BPC deposits surplus funds with the national treasury[1]
Regulation · Other
Following a legal change requiring state-owned enterprises to transfer surplus or idle funds to the national treasury, BPC deposited 50 billion taka with the government.
- 2020
COVID-19 lockdown reduces petroleum sales and prompts private storage use[1]
Other
Petroleum sales reportedly fell by approximately 60 percent during Bangladesh's COVID-19 lockdown. With BPC-owned storage close to full capacity, the corporation arranged to use privately owned oil tanks.
- 2018
BPC seeks formula for automatic domestic fuel-price adjustment[1]
Pricing
Bangladesh Petroleum Corporation sought government permission to use a pricing formula linked to international petroleum prices. The corporation cited the risk of domestic prices remaining too low during periods of international-market change, potentially producing losses and encouraging fuel smuggling across the Indian border.
- 2017
BPC stops supplying Biman Bangladesh Airlines on credit[1]
Other
BPC decided not to continue credit-based fuel sales to Biman Bangladesh Airlines after the state-owned carrier's unpaid balance reportedly exceeded 16 billion taka.
Single Point Mooring pipeline supports direct crude-oil transfer[1]
Other
A roughly 120-kilometer pipeline links the Single Point Mooring project with Eastern Refinery Limited, supporting more direct transfer of imported crude from deep-sea vessels to the refinery.
Sources2 sources
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