The government has approved a novel policy that will revolutionize the way citizens and companies obtain fuel.
Mobile apps for fuel oil home delivery services will soon be available online.
The Energy Division released a gazette on January 3, introducing the "Policy on Appointment of Dealers/Suppliers for Sale/Supply of Fuel Products in mobile mode through the Use of Digital Technology, 2024." This policy opens the door to online sales and home delivery of essential fuels, such as diesel, petrol, octane, and lubricant oil.
The scope of this policy is extensive, covering a diverse array of needs ranging from residential buildings to commercial establishments, government offices, commercial generators, heavy construction equipment, and industrial plants. The move is expected to alleviate the challenges posed by long queues at gas stations and unreliable suppliers.
The online fuel delivery service, set to roll out in designated city corporations and metropolitan areas, will initially be available in Dhaka, Chattogram, Khulna, Rajshahi, Sylhet, Mymensingh, Barishal, Rangpur, Cumilla, Narayanganj, and Gazipur.
Residents outside these areas will not have access to online fuel purchases.
Under the policy, customers within the designated areas can purchase fuel at the government-set price, with an additional service charge based on the delivery distance. The delivery, managed by companies approved by the Bangladesh Petroleum Corporation (BPC), will be executed through tank lorries or jerrycans, with service charges capped at Tk1 per litre for tanker deliveries and Tk2 per litre for jerrycans.
Energy Division officials attribute the demand for online fuel delivery to shifting fuel needs and busy schedules. As industrial activity and residential fuel consumption surge, the convenience of this new service aims to eliminate queues and unreliable suppliers.
The online fuel sale model aligns with global practices and is seen as a progressive step for Bangladesh's digital infrastructure. To address security concerns, officials emphasize a registration process for customers on the app or web link, ensuring transparent tracking and minimizing misuse risks.
This policy mirrors successful international models, including India's Door-to-Door diesel delivery program and Bangladesh's liquid petroleum (LP) gas home delivery.
According to BPC data, the industrial sector accounted for 5.63% of total diesel sales in FY23, while households comprised 0.97%. Most fuel transactions in both sectors occur within the open trading system.
Businesses have warmly welcomed the policy shift. Sajjad Karim Kabul, president of the Bangladesh Petrol Pump Owners Association, acknowledges the need for modernizing fuel retail and emphasizes addressing challenges for successful implementation.
Interested companies and individuals looking to participate in online fuel delivery must meet specific criteria, including registration with the ICT Department or Bangladesh Computer Council, possession of a valid Digital Business Identity Number (DBIN), and adherence to trade license requirements and turnover criteria.
For buyers, the registration process involves providing essential information on the BPC-approved company's app or web link. Payment options include mobile banking, bank transfers, and digital gateways.
Energy experts and owners of gas stations, however, voiced concerns because fuel oil in jerry cans is not allowed to be transported in many countries and home delivery of this kind carries a significant risk of explosion.
Speaking to the media, Energy Secretary Nurul Alam said that online fuel oil delivery is a global service that is compatible with Bangladesh's current digital infrastructure. The goal of this program is to increase consumer access to fuel and promote fuel user uptake.
In 2020, the Bangladeshi startup My Fuel Pump was established to provide fuel delivery services via mobile application, but now inactive. An official from this start-up stated that they are hoping to resolve a government policy issue that has prevented them from providing their service, which is the reason it is currently unavailable. This entrepreneur received the Best Startup Innovation Award from the Bangladesh Brand Forum in 2022.
The move towards online fuel delivery in Bangladesh is not only a game-changer for the fuel industry but also a testament to the government's commitment to enhancing convenience and efficiency for its citizens.
