Padma Oil Company
Corporate brand
UnclaimedA Bangladesh government-owned petroleum importer, storage operator, and fuel distributor.
Last updated August 31, 2026
Overview
Padma Oil Company Limited is a state-owned petroleum company in Bangladesh and one of the country's three principal government fuel distributors, alongside Jamuna Oil Company and Meghna Petroleum. It operates under Bangladesh Petroleum Corporation (BPC), the statutory energy organization overseen by the Ministry of Power, Energy, and Mineral Resources. The company is organized as a public limited company under the Companies Act 1913 and is listed on both the Dhaka Stock Exchange and the Chittagong Stock Exchange. The company is based on Strand Road in Chattogram, historically known as Chittagong, where the port-city location supports its import, storage, and distribution functions. Its central installation is at Gupthakhal in Patenga, Chattogram. Padma Oil maintains a nationwide depot and terminal network serving road transport, aviation, industry, agriculture, and other commercial and public-sector users. Products handled through the network include diesel, petrol, kerosene, jet fuel, lubricants, and agricultural chemicals. The company has also expanded its station offering through agreements to market liquefied petroleum gas supplied by private-sector LPG companies. Padma Oil's corporate lineage reaches back to the colonial petroleum trade in British India. Its historical predecessors include the Rangoon Oil Company, registered in Scotland in 1874 and reorganized as the Burmah Oil Company in 1885. Burmah Oil established an oil installation at Maheshkhali near Chattogram in 1903 and later developed additional commercial and exploration activities in the region. In the period before the 1947 partition of British India, Burmah Oil and Burmah Shell were among the major oil companies operating in what is now Bangladesh. Burmah Shell established an aviation depot at Tejgaon Airport in 1948. In 1965, the Burmah Shell shareholding and operating structure in the region was reorganized into Burmah Eastern Limited. After the Bangladesh Liberation War, Burmah Eastern became a subsidiary of Bangladesh Petroleum Corporation in 1977. In 1985, Burmah Oil transferred its remaining property in Bangladesh to BPC. Under the transfer arrangement, Burmah Eastern changed its name to Padma Oil Company Limited in 1988, taking its name from the Padma River. Today, Padma Oil is primarily a downstream distribution and infrastructure business rather than an upstream exploration company. Its role includes receiving petroleum products, storing them in terminals and depots, supplying fuel stations and institutional customers, and supporting aviation-fuel distribution. The company has faced operational and governance challenges, including allegations of embezzlement and irregular recruitment involving former or senior executives, disputes over unpaid jet-fuel credit supplied to Biman Bangladesh Airlines, safety incidents at fuel depots, and public criticism of proposed capital projects. These matters have formed part of the public discussion surrounding the management of Bangladesh's state-controlled fuel-distribution system.
History
Padma Oil Company is the successor to a chain of petroleum enterprises whose history extends to the nineteenth-century oil trade in British India. The earliest named predecessor was the Rangoon Oil Company, registered as a Scottish joint-stock company in 1874. It was reorganized as the Burmah Oil Company in 1885. Burmah Oil established an oil installation at Maheshkhali near Chattogram in 1903 and drilled a well at Sitakunda in 1914. A major Burmah Oil distributor, Bullock Brothers, opened a trading office on Strand Road in Chattogram in 1920; Burmah Oil took over the office in 1929, and the location later became central to the company's corporate presence. Before the partition of British India in 1947, Burmah Oil and Burmah Shell Oil Storage and Distribution Company were important petroleum operators in the territory that became Bangladesh. Burmah Shell established an aviation depot at Tejgaon Airport in 1948. In 1965, Burmah Shell transferred its interest in the local operating structure, resulting in the formation of Burmah Eastern Limited. Following the Bangladesh Liberation War, the newly independent state's petroleum sector was progressively brought under public control. Burmah Eastern became a subsidiary of Bangladesh Petroleum Corporation in 1977. In 1985, Burmah Oil transferred its entire property in Bangladesh, including Burmah Eastern, to BPC. The transfer terms required the company to adopt a new name, and in 1988 it became Padma Oil Company Limited, named after the Padma River. Padma Oil now functions as a downstream petroleum company. It imports or receives petroleum products, stores them in terminals and depots, and distributes them across Bangladesh. Its central installation is at Gupthakhal in Patenga, Chattogram. The reported depot network includes Godenail, Daulatpur, Bhaghabari, Chandpur, Parbatipur, Natore, Rajshahi Rail Siding, Jhalokati, Barisal Barge, Sylhet, Srimangal, Brahmanbaria, Ashuganj, Bhairab Bazar Barge, Rangpur, Kurmitola Aviation, and Chattogram Airport Depot. This network allows the company to serve fuel stations, airports, industries, agriculture, and public-sector customers. The company has also participated in the commercialization of LPG through agreements with private suppliers. Its public record includes governance disputes and allegations investigated by Bangladesh's Anti-Corruption Commission, including cases concerning alleged embezzlement and irregular recruitment. In 2017, Padma Oil sought to stop extending credit for jet-fuel sales to Biman Bangladesh Airlines because of substantial unpaid receivables. In 2021, the company faced scrutiny over a fatal depot explosion in Jhalokati, proposed construction spending, and repeated jet-fuel price increases. These episodes illustrate the commercial, safety, and public-policy pressures faced by a government-controlled petroleum distributor.
- 1988
Renamed Padma Oil Company Limited
[1]Burmah Eastern Limited adopted the Padma Oil Company name under the terms of the asset transfer.
- 1985
Assets transferred to Bangladesh Petroleum Corporation
[1]Burmah Oil transferred its entire property in Bangladesh, including Burmah Eastern, to BPC.
- 1977
Became a BPC subsidiary
[1]After Bangladesh's independence, Burmah Eastern Limited became a subsidiary of Bangladesh Petroleum Corporation.
- 1965
Burmah Eastern Limited formed
[1]A new local company called Burmah Eastern Limited was formed after a restructuring involving Burmah Shell's interest.
- 1914
Sitakunda well drilled
[1]Burmah Oil drilled a well at Sitakunda in the Chattogram area.
- 1903
Maheshkhali installation established
[1]Burmah Oil established an oil installation at Maheshkhali near Chattogram.
- 1885
Reorganization as Burmah Oil Company
[1]Rangoon Oil Company was reorganized and became the Burmah Oil Company.
- 1874
Rangoon Oil Company registered
[1]The historical predecessor Rangoon Oil Company was registered as a joint-stock company in Scotland.
Products and positioning
State-owned national petroleum distributor and fuel-infrastructure operator
Petroleum fuel
Diesel
Diesel is among Padma Oil's principal distributed fuels, supplied through its depot and station network to road transport, industry, agriculture, and institutional customers across Bangladesh.
Petroleum fuel
Petrol and gasoline
Padma Oil distributes petrol and gasoline as part of its general motor-fuel portfolio. These products move through the company's storage infrastructure and retail or institutional distribution channels.
Petroleum fuel
Kerosene
Kerosene is included in Padma Oil's traditional petroleum-product range and is distributed through the company's national depot system.
Aviation fuel
Jet fuel
Padma Oil handles aviation fuel through aviation-related facilities including Kurmitola Aviation and Chattogram Airport depots. The company has supplied major aviation customers and has publicly addressed pricing and credit terms for jet-fuel sales.
Gas fuel · 2021
Liquefied petroleum gas
Through agreements with private LPG suppliers, Padma Oil has added LPG marketing to the products available through parts of its station network. Reported counterparties include Bashundhara LPG, Petromax LPG, Beximco LPG Unit-1, and Energypac Power Generation.
Controversies
2021
Fatal Jhalokati depot explosion
A vessel exploded at a Padma Oil depot on the Sugandha River in Jhalokati. The reported death toll eventually reached six after five of the initially injured people died in hospital.
2017
Former managing director arrested over alleged embezzlement
Former Managing Director Md Abul Khair was arrested in a case concerning alleged embezzlement of approximately 30 million taka, relating to conduct said to have occurred in 1995–1996. No final disposition is supplied by the reference.
2013
Alleged illegal recruitment
The Anti-Corruption Commission sued Managing Director Abul Khayer and 91 employees over allegations that staff had been hired unlawfully. The available reference does not establish a final court outcome.
2012
Alleged embezzlement by senior executives
The Anti-Corruption Commission brought charges against three senior Padma Oil executives over alleged embezzlement from the company. The available reference does not establish a final court outcome.
Brand decisions
2021
Expanded LPG marketing through station agreementsProduct launchBackground
Padma Oil sought to broaden the commercial offering available through its fuel-station network.
Action taken
The company signed agreements with multiple private LPG suppliers to sell their LPG at Padma Oil stations.
Aftermath
The arrangements diversified the product mix beyond conventional liquid petroleum fuels.
2021
Repeated jet-fuel price increasesPrice changeBackground
Jet-fuel prices in Bangladesh were adjusted repeatedly during the preceding thirteen-month period.
Action taken
Padma Oil increased its jet-fuel price for the eleventh time in roughly thirteen months.
Aftermath
The increases contributed to public discussion about aviation-fuel costs and the wider pricing of petroleum products in Bangladesh.
2021
Proposed liaison-building and infrastructure spendingStrategyBackground
Padma Oil sought funding for a twelve-storey liaison building in Paribagh, Dhaka, while other projects included a Chattogram headquarters and an airport jet-fuel pipeline.
Action taken
The company pursued funding for the proposed capital projects.
Aftermath
The Consumer Association of Bangladesh criticized the building project as costly and unnecessary; the reference does not establish whether all proposals were completed.
2017
Stop extending jet-fuel credit to Biman Bangladesh AirlinesStrategyBackground
Padma Oil reported that Biman Bangladesh Airlines owed approximately 16 billion taka for fuel supplied on credit.
Action taken
The company announced that it would no longer sell jet fuel to Biman on credit.
Aftermath
The decision highlighted the working-capital and receivables risks involved in supplying fuel to state-linked customers.
Reported unpaid jet-fuel receivables. (December 2017)
Recent events
- 2021
LPG marketing agreements expand station product range[1]
Product launch
Padma Oil entered arrangements with Bashundhara LPG, Petromax LPG, Beximco LPG Unit-1, and Energypac Power Generation to market LPG through its stations.
- 2021
Jet-fuel price increased for the eleventh time in about thirteen months[1]
Pricing · Regulation
Padma Oil raised its jet-fuel price in November 2021 amid repeated price adjustments in Bangladesh's aviation-fuel market.
- 2020
Padma Oil declares 125 percent cash dividend[1]
Other
The listed company declared a cash dividend equivalent to 125 percent of its shares.
- 2017
Padma Oil ends fuel-on-credit sales to Biman[1]
Pricing
Padma Oil said it would stop supplying jet fuel to Biman Bangladesh Airlines on credit after reporting unpaid dues of about 16 billion taka.
Sources1 sources
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