Here’s a shocking revelation that’s rocking Bangladesh’s energy sector: two of the government’s largest energy importers, Bangladesh Petroleum Corporation (BPC) and Petrobangla, have racked up a staggering Tk34,000 crore in unpaid fuel import duties, leaving customs revenue targets in jeopardy. But here’s where it gets controversial—while private importers must settle all customs duties before their goods leave the port, these state-owned giants have been clearing fuel consignments without upfront payment, raising questions about fairness and accountability.
This practice has dealt a severe blow to the Chattogram Custom House, which handles the bulk of the country’s petroleum and liquefied natural gas (LNG) imports. The custom house heavily relies on payments from BPC and Petrobangla to meet its revenue targets. And this is the part most people miss—the largest chunk of this unpaid liability comes from Petrobangla’s LNG imports, which have been released without lawful assessment or payment.
In a stark official letter dated January 8, the Chattogram Custom House demanded Tk22,048.62 crore in unpaid duties and taxes from Petrobangla for the period from 2021 to December 2025. According to the letter, Petrobangla imported LNG under 408 bills of entry up to November 30, 2025, but paid duties for only 38 bills, leaving a whopping 370 consignments uncleared. This blatant violation of Sections 83, 84, and 90 of the Customs Act, 2023, has sparked outrage among customs officials.
‘Petrobangla has been releasing LNG consignments without paying duties or taxes, which is clearly against the law,’ stated Tafsir Uddin Bhuiyan, additional commissioner of Chattogram Custom House. But why is this happening? Petrobangla’s Director (Finance) Mizanur Rahman argues that LNG imports were previously subject to double taxation—a 15% VAT at the import stage and another 15% during distribution. However, the government withdrew the import-stage VAT in June 2025, leaving only a 2% advance income tax (AIT) and no customs duty on LNG imports. Rahman claims most of the Tk22,048 crore dues relate to the period before this change.
Here’s where it gets even more contentious—a senior Petrobangla official blames chronic delays in government subsidy payments for the company’s inability to clear its tax liabilities. ‘We sell gas at a subsidized rate, and the government is supposed to reimburse us, but delays from the Finance Division have left us cash-strapped,’ the official explained. With the taka weakening and global LNG prices surging, the situation has only worsened.
BPC isn’t off the hook either. Along with its subsidiaries—Padma Oil Company, Meghna Petroleum, Jamuna Oil Company, Eastern Refinery, and Standard Asiatic—it has accumulated Tk12,347 crore in unpaid customs liabilities between July 2020 and June 2025. Despite show-cause and demand notices for 695 bills totaling Tk3,430.32 crore, BPC has only paid Tk700 crore, leaving Tk2,730.32 crore outstanding as of October 29, 2025.
Customs officials point to an ‘unequal system’ where state-owned importers enjoy privileges denied to private firms. ‘Private importers can’t release goods without paying duties, but state-owned entities can, and this gap is a major reason we’re missing revenue targets,’ Tafsir Uddin noted. Energy expert Prof M Tamim adds that these companies collect duties and taxes from consumers but fail to pass them on to the government, calling it a ‘clear irregularity.’
The FY2025–26 budget attempted to address this by waiving import duties on fuels like diesel and natural gas and reducing duties on CNG, NPG, and LNG. However, the question remains: will these measures be enough to bridge the revenue gap and ensure fairness?
Here’s a thought-provoking question for you: Is the government’s leniency toward state-owned importers a necessary evil to keep energy prices stable, or does it unfairly disadvantage private players and undermine fiscal discipline? Let’s hear your thoughts in the comments!
