B.Mirror Desk: The faster Bangladesh’s economy expands, the more the country’s old energy management structure is facing big questions. The demand for energy is constantly increasing with the expansion of industries, transportation, power generation and trade. But the capacity to import, store, refine and distribute energy has not been developed in that proportion. As a result, even a slight disruption in the supply system spreads its impact to different levels of the industry and economy.
In this reality, it is time to redefine the role of the government in the energy sector. Instead of being the owner and operator of everything, the state must focus more on the role of a policymaker and a strong regulator. And the private sector must be given greater opportunities in investment, infrastructure development, management and supply systems. Starting from the import of refined fuel oil to the establishment of refineries, storage, transportation and distribution—if competitive participation is ensured in each field, a new momentum can be created in energy management.
For a long time, a large part of the country’s fuel oil sector has been dependent on state-owned institutions. Government management has been playing a major role in import, storage, transportation, distribution and sales. But the size of the country’s economy is now much larger than before. The number of industrial establishments has increased, the transportation system has expanded, urbanization has accelerated and the use of energy in people’s lives has also increased. It has not been possible to increase state infrastructure and capacity in line with these changes.
The long-standing dependence on a major refinery makes this limitation even clearer. Since the domestic refining capacity is less than the country’s demand, a large amount of refined fuel oil has to be imported from abroad. If this causes price increases in the international market, supply shortages or pressure on foreign exchange, the country’s market is also quickly affected. Therefore, it is not enough to continue importing for energy security; the country’s own refining, storage and supply capacity must also be increased.
This is where the need for private investment is greatest. If a domestic or foreign company wants to build a refinery with its own financing, it must be given that opportunity in a simple and transparent process. Similarly, private investment needs to be encouraged to build modern infrastructure for fuel storage, pipelines, terminals, transportation and distribution networks.
The state and private sectors are working side by side to develop the energy sector in different countries of the world. Bangladesh can also use that experience. Especially, effective initiatives are needed to attract international investors who are experienced in energy refining and infrastructure development to Bangladesh. If a long-term and stable investment structure is created for big investors from Saudi Arabia, the United Arab Emirates, Turkey or various European countries, it is possible to bring about major changes in this sector.
However, giving opportunities to the private sector does not mean removing government control in any way. Rather, the government’s responsibility will then become more important. The government must ensure that there is competition in the market, that no organization is able to create a monopoly position and that consumers are getting quality products at fair prices.
Therefore, it is important to increase the capacity of regulatory agencies in the energy sector. There must be effective monitoring at every level of pricing, product quality, import costs, storage, supply, transportation and market competition. It must also be ensured that no organization can control the market by creating artificial crises or take advantage of abnormal profits.
The bottom line is that the role of the government is more important than being a businessman. There will be multiple players in the field, but the rules will be the same for everyone. The organization that provides good service, supplies products at low cost and meets market demands quickly will be ahead in the competition. If such an environment can be created, efficiency in the energy sector will also increase.
The biggest benefit of competition will be found in the supply system. Currently, if there is excessive dependence on any one source or organization, if there is a problem there, it will affect the entire market. But if there are multiple importers, refineries, storage facilities and suppliers, the shortage of one organization can be met by another organization. As a result, energy supply will be more stable and national energy security will also be strengthened.
In this case, the importance of existing government organizations will not decrease. State-owned refineries and distribution organizations will continue their activities. However, along with them, private organizations must be given an opportunity to enter the market. If healthy competition is created between government and private organizations, both parties will benefit.

They need to improve their skills. Ultimately, this will benefit industrial enterprises, the transport sector and the general consumer.
Another major advantage of public-private partnerships is increasing the amount of investment. The government needs a huge amount of money to build a large refinery, a deep seaport-based fuel terminal or a large storage facility. The implementation of the project also takes a long time. If private and foreign investment is involved, the financial pressure of the government will decrease and at the same time, an opportunity will be created to build infrastructure quickly.
If private investment increases, its impact will not be limited to the energy sector alone. Direct and indirect employment will be created in the construction of new refineries, storage terminals, transport systems and other infrastructure. Local industries will develop, the demand for skilled manpower will increase and new business opportunities will be created in various related sectors. The government can also get revenue from taxes, VAT, license fees, rent and other sources.
When the stagnation of investment in the economy is a major challenge, the energy sector can be considered an important area for attracting investment. However, it is not enough to just invite investors; a realistic business environment must also be ensured for them. The approval process should be simplified, the decision-making process should be reduced, and the policy should be consistent.
Foreign investors especially look at how stable the policies are in a country, how fast business decisions are made, and how secure the investment is. Therefore, long-term and predictable policies are needed to bring foreign investment to the energy sector. At the same time, transparency should be maintained in the approval of licenses, imports, storage, and distribution. Companies should be selected on the basis of capacity, investment capacity, technology, and experience without favoring any particular group.
The same philosophy can be applied not only to energy, but also to other infrastructure sectors of the country. Long delays in unloading goods at ports, inefficiency in the transportation system, or excessive costs in infrastructure management ultimately put pressure on businesses and consumers. Where the private sector can reduce time and costs with its skills and technology, they should be given the opportunity to participate under appropriate controls.
However, the public interest should be given utmost importance in the entire process. It is natural that private companies will benefit; But along with that profit, it is also important to ensure consumer rights, fair prices, product quality, and national interests. That is why private participation in the energy sector without a strong regulatory system may not yield the desired results.
The main question facing Bangladesh now is—will the state do everything itself, or will it create a framework where the state sets rules and supervises and competent private institutions play a role in investment and management? In the current economic reality, the second path seems more effective.
Therefore, the government must gradually move away from its ownership-centric role and increase its regulatory, policy-making, and supervisory capabilities. At the same time, the private sector must be given the opportunity to invest responsibly. There will be state institutions, but alongside them, there will also be multiple efficient and capable private institutions in the market—this can be the basis of a balanced energy system.
To ensure Bangladesh’s energy security, it is no longer enough to simply calculate how much fuel has been imported. How much refining capacity has been created, how much storage capacity has increased, how diversified the supply has become, and how competitive the market has become—these questions are equally important.
As the economy expands, there is no room for the energy sector to remain locked into the old structure. The power of the state should be in policy and control, and the power of the private sector should be harnessed in investment, technology, management and expertise. Only a combination of government control and private sector initiatives can make the country’s energy sector more modern, competitive and secure. And that change can not only address the energy crisis, but also accelerate industrialization, investment and economic growth in the long term.