Hoarding drives local fuel pressure

Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood told Parliament on Monday that Bangladesh currently faces no fuel shortage, and that panic buying and hoarding are the primary causes of supply disruptions.

“I want to make it clear that there is no shortage of fuel in Bangladesh at present.

In fact, we have increased supply compared to last year,” he said, speaking under Section 300 of the Rules of Procedure to address concerns about energy availability amid regional tensions following the Middle East conflict.

The Minister explained that actual consumption could not have suddenly doubled within a year, and that the current surge in purchases indicates hoarding rather than genuine demand.

“This unusual behaviour shows that fuel hoarding is now a bigger problem than any real shortage,” he said.

He emphasised the need for public trust and awareness to stabilise the situation, urging citizens to avoid excessive purchases, refrain from hoarding, prevent wastage, and report illegal connections.

Highlighting government preparations, the Minister said that under the directive of Prime Minister Tarique Rahman, authorities have ensured sufficient fuel stocks despite global uncertainties caused by geopolitical tensions, supply chain risks, and fuel transport challenges, particularly in the Middle East.

When the current government assumed office on 17 February 2026, diesel stocks stood at 206,000 metric tons.

By 30 March 2026, stocks had increased to 218,000 metric tons, even as more than 482,000 metric tons of diesel were sold over the 41-day period.

This was made possible through advance imports and effective management.

To meet anticipated demand during the upcoming Holy Eid-ul-Fitr, the government has arranged for 10 to 25 per cent additional fuel supply in March 2026 compared to March 2025 levels.

Last year, daily diesel demand in March averaged around 12,000 metric tons, while petrol and octane demand ranged between 1,200 and 1,400 metric tons.

This year, abnormal spikes in purchases in certain areas suggest hoarding rather than real demand growth.

The Minister also outlined enforcement measures against illegal hoarding and smuggling.

To date, 3,168 mobile court operations have been conducted, 153 cases filed, fines imposed, and 16 individuals sentenced to imprisonment.

Authorities have seized 140,000 litres of diesel, 22,000 litres of octane, and 23,000 litres of petrol.

Mahmood warned that the government would take even stronger action against violators to safeguard national security and public interest.
Fuel import arrangements are in place to ensure continuous supply.

In April, 50,000 metric tons of octane will be imported under existing agreements, alongside an additional 30,000 metric tons sourced domestically to meet expected demand.

The Minister highlighted that the government is maintaining stable domestic fuel prices despite rising international costs.

Diesel is currently being sold at around Tk 100 per litre, while octane and petrol are priced below international market rates, with the government providing substantial subsidies to protect consumers.

“The government believes that in times of global crisis, the first responsibility of the state is to stand by the people and ensure their protection,” he added.

Mahmood noted that, unlike many other countries that declared energy emergencies and imposed restrictions on industries and schools, Bangladesh has maintained smooth operation across transportation, industry, agriculture, education, and business sectors.