An analysis of BPC tender documents, work orders and related records shows that the local representation or business links of at least six international fuel suppliers are connected to two companies owned by businessman Dr Ejazur Rahman.
The companies are Seven Mark and Transbangla Commodities Limited.
A significant share of BPC’s refined fuel import orders for the 2025 to 2026 fiscal year also went to suppliers linked to these companies, raising questions about competition, supply security and the possibility of higher costs for the government.
According to BPC data, work orders were issued for around 5.51 million tonnes of refined fuel through government to government arrangements and open tenders during the fiscal year.
Of this amount, around 4.3 million tonnes, or nearly 78 percent, went to suppliers whose local representatives or business connections were reportedly linked to Ejaz affiliated companies.
The six international suppliers include Unipec Singapore Pte Ltd and Indonesia’s PT Bumi Siak Pusako (BSP) Zapin, which are linked to Seven Mark.
The suppliers linked to Transbangla Commodities include Petco Trading Labuan Company Limited, PTT International Trading, Vitol Asia and Sinochem International Oil.
Although the international companies are separate entities, the findings indicate that a significant part of their local representation in Bangladesh is connected to the same business circle.
However, the volume of work orders alone does not establish any wrongdoing. International fuel procurement involves several factors, including price, quality, supply capacity, previous experience and tender conditions.
The main concern is whether competition was sufficiently open and whether dependence on a limited number of suppliers could create supply risks.
Large orders to Unipec and Vitol Asia
A tender covering the June to August period shows that BPC sought to import between 925,000 and 1.15 million tonnes of refined fuel under four packages.
Under Package PG-1, Unipec Singapore received the order to supply between 320,000 and 390,000 tonnes of diesel and 70,000 to 90,000 tonnes of jet fuel.
Under PG-2, Vitol Asia received an order for 300,000 to 340,000 tonnes of diesel and 60,000 to 80,000 tonnes of jet fuel.
Trafigura received the PG-3 order for 150,000 to 200,000 tonnes of furnace oil.
Under PG-4, Vitol Asia received the order to supply between 25,000 and 50,000 tonnes of octane.
Local representation for Unipec and Vitol Asia, which secured three of the four packages, is reportedly linked to companies associated with Ejaz.
The potential value of imports under these packages exceeds Tk 17,000 crore.
Fuel premiums rise sharply
Fuel import prices include premiums that take into account international market prices, transportation, insurance, shipping costs and other risks.
The premiums offered by several suppliers increased significantly in recent tenders.
In BPC’s open tender for the January to June period of the 2025 to 2026 fiscal year, Unipec received orders with premiums of $4.72 per barrel for diesel and $6.86 for jet fuel.
Vitol Asia’s premiums during the same period were $4.78 for diesel and $6.88 for jet fuel.
For the subsequent June to August tender, Unipec offered premiums of $13.25 for diesel and $14.86 for jet fuel.
Vitol Asia offered $13.18 and $14.78 respectively.
BPC officials said the increase was partly justified by the conflict in the Middle East and rising risks to international shipping.
However, some sector insiders have questioned whether limited competition and dependence on a small number of suppliers may also have contributed to the higher premiums.
They said a comparison of international and regional market prices with BPC’s purchase prices during the same period would be necessary to assess the issue.
Supply concerns during Middle East tensions
BPC records reportedly show that two international suppliers with local representation linked to the Ejaz affiliated companies were unable to supply certain fuel cargoes during the recent escalation of tensions in the Middle East.
The issue was also raised at a BPC board meeting, according to sources familiar with the matter.
Energy sector experts said dependence on a limited number of suppliers can create risks during a crisis.
They said if several suppliers face difficulties at the same time, BPC may struggle to secure alternative sources quickly.
Former BPC officials join related companies
The investigation has also raised questions about former officials of BPC and its state owned oil marketing companies joining companies associated with Ejaz.
According to sources, at least 10 former officials of BPC and oil marketing companies joined Ejaz’s companies after retirement.
They previously held positions involving oil procurement and sales, marketing, international supply and administration.
Former managing director of Jamuna Oil Company Mustafa Qudrat E Elahi has also joined Transbangla Commodities, according to several sources.
The offices of Ejaz’s companies are reportedly located in the same building in Karwan Bazar that houses BPC’s Dhaka liaison office.
Taking a job with a private company after retirement is not in itself evidence of wrongdoing.
However, sector insiders said the former officials’ previous responsibilities, their roles in the companies they later joined and those companies’ ongoing commercial dealings with BPC warrant scrutiny over possible conflicts of interest.
Questions over BSP Zapin
Questions have also been raised over Indonesia’s BSP Zapin, which has local representation linked to the Ejaz affiliated business circle.
Some BPC officials have questioned whether the company met the corporation’s eligibility requirements when it was included as a supplier under the government to government arrangement.
Records at Chattogram port reportedly show that some fuel shipments imported for BPC under the company’s name arrived from ports in Malaysia and Singapore rather than Indonesia.
However, using a third country’s port to deliver fuel does not by itself indicate any irregularity.
The key question is whether the company met BPC’s eligibility requirements when it was selected as a supplier and what documents it submitted to establish that eligibility.
Calls for greater transparency
Sector insiders said the government could reduce long standing business dependence by expanding fuel supply sources and increasing competition in the market.
They said the tender process should be made more transparent, supplier qualifications should be reviewed regularly and possible conflicts of interest involving local representatives should be examined.
Professor M Shamsul Alam, energy adviser to the Consumers Association of Bangladesh, said any attempt by an individual to influence the tender process and interfere with competition would be a serious matter.
He said legal action should be taken if specific evidence supports the allegations.
The allegations surrounding the influence of a particular business circle in fuel imports now warrant closer scrutiny.
An impartial review of supplier selection, tender competition, premium pricing and the business involvement of former officials could help establish the actual picture.
Such a review would also show whether Bangladesh’s dependence on a limited number of suppliers is reducing or increasing the risks to fuel security.
