Here’s a shocking truth: Two of Bangladesh’s largest energy importers, Bangladesh Petroleum Corporation (BPC) and Petrobangla, owe a staggering Tk34,000 crore in unpaid fuel import duties, severely crippling the country’s customs revenue targets. But here’s where it gets controversial—while private importers must settle all duties before their goods leave the port, these state-owned giants have been bypassing payments, raising questions about fairness and accountability in the system.
Customs officials reveal that this practice has dealt a heavy blow to the Chattogram Custom House, which handles the bulk of the nation’s petroleum and liquefied natural gas (LNG) imports. The custom house heavily relies on payments from BPC and Petrobangla to meet its revenue goals. And this is the part most people miss—Petrobangla alone accounts for the lion’s share of this debt, with unpaid duties on LNG imports totaling Tk22,048.62 crore between 2021 and December 2025. According to an official letter from Chattogram Custom House, Petrobangla cleared 370 LNG consignments without paying the required duties, despite submitting 408 bills of entry. This blatant violation of the Customs Act 2023, which mandates full payment before goods are released, has left officials scrambling to recover funds.
BPC isn’t far behind, with its subsidiaries—Padma Oil Company, Meghna Petroleum, Jamuna Oil Company, Eastern Refinery, and Standard Asiatic—accumulating unpaid duties of Tk12,347 crore between July 2020 and June 2025. Despite show-cause notices and demands for Tk3,430.32 crore, only Tk700 crore has been paid, leaving a massive gap. Is this a case of preferential treatment? Customs officials argue that state-owned entities enjoy operational privileges denied to private firms, allowing them to clear goods without immediate payment. This double standard, they claim, is a key reason revenue targets are consistently missed.
Energy expert Prof M Tamim points out a troubling pattern: these companies collect duties and taxes from consumers but fail to pass them on to the government. “Releasing imports without paying duties is a clear irregularity,” he asserts, calling for urgent intervention by the National Board of Revenue (NBR).
But here’s the counterpoint—Petrobangla’s Director (Finance) Mizanur Rahman explains that LNG imports were previously subject to double taxation: a 15% VAT at the import stage and another 15% during distribution. The government scrapped the import-stage VAT in June 2025, leaving only a 2% advance income tax (AIT) and no customs duty. Rahman claims most of the Tk22,048 crore dues stem from the pre-June 2025 period, and AIT payments are now regular. A senior Petrobangla official adds that chronic delays in government subsidy payments have left the company cash-strapped, as they sell gas at subsidized rates but struggle to receive reimbursements. With the taka’s depreciation and soaring global LNG prices, the financial burden has only intensified.
Petrobangla Chairman Mohammad Reznur Rahman assures that negotiations with the NBR and Finance Division are ongoing, and some arrears have already been settled. “Once the subsidy is disbursed, we’ll clear the remaining dues,” he promises. Meanwhile, BPC officials claim they pay regularly unless disputes arise over customs claims.
But here’s the bigger question—is the government inadvertently exacerbating the issue? The FY2025–26 budget waived import duties on fuels like diesel and natural gas, reduced duties on CNG, NPG, and LNG from 10% to 5%, and slashed crude oil duties from 5% to 1%. While these measures aim to ease import costs, they also reduce potential revenue streams. Could this be a case of short-term relief leading to long-term financial strain?
As the debate rages on, one thing is clear: the unpaid dues of BPC and Petrobangla are not just a financial headache but a systemic issue demanding transparency and reform. What do you think? Is this a fair system, or does it need an overhaul? Share your thoughts in the comments below!
