The police seized 9,000 litres of condensate petroleum at Shahjadpur in Sirajganj on Monday.
The police raided BSIC bus stop area and arrested a driver of a tank lorry who was carrying the condensate petroleum in the afternoon.
Police officials said that the arrested driver, Ashraful Alam, 35, of Baghabari of Shahjadpur upazila was a member of syndicate of condensate petroleum suppliers.
A band of local smugglers of fuel oil made hectic move to release the seized condensate petroleum and the lorry driver, the officials said.
Shahjadpur police station officer-in-charge Rezaul Islam said that proper legal action would be taken against the perpetrators.