Fuel prices revised as queues persist despite record reserves

The government has raised consumer-level fuel prices across all categories, setting new rates to take effect from Sunday, even as Bangladesh holds record-high fuel reserves that officials say should ensure supply stability.

Under the revised pricing structure, diesel will be sold at Tk 115 per litre, octane at Tk 140, petrol at Tk 135, and kerosene at Tk 130.

The adjustment comes against the backdrop of continued volatility in global fuel oil markets, where rising prices have forced importing countries to recalibrate domestic rates.

The decision coincides with an unprecedented buildup in national fuel reserves. Bangladesh’s octane stock has surged to approximately 55,500 tonnes—the highest in its history—marking a significant milestone in the country’s energy security framework.

Officials view the reserve as a strategic cushion against global supply shocks, even as consumers continue to face long queues at filling stations.

The surge in stock has been driven by successive large-scale imports. In early April, a shipment of 26,000 tonnes of octane arrived, followed by another
consignment of 27,000 tonnes that reached the outer anchorage of Chattogram Port late last week.

Once fully unloaded, the total volume is expected to exceed the country’s storage capacity of 53,000 tonnes, highlighting both the scale of procurement and the limitations of existing infrastructure.

Authorities estimate that current reserves are sufficient to cover more than 45 days of demand. Domestic production has also contributed to supply, with local refining adding around 700 tonnes of octane per day.

Officials have described the situation as unprecedented. State Minister for Power, Energy and Mineral Resources Anindya Islam Amit said Bangladesh has never before maintained such high levels of fuel reserves, adding that supply planning is already secured through May, with preparations underway for June.

According to the Bangladesh Petroleum Corporation, storage capacity is spread across 16 depots nationwide.

Around 20,000 tonnes are held at Eastern Refinery Limited, while BPC’s main facilities in Chattogram account for another 22,000 tonnes.

Despite the robust stock position, supply at the retail level has struggled to keep pace.

Long queues remain a daily feature in Dhaka and Chattogram, particularly among motorcyclists and private car owners who rely heavily on octane.

Many consumers report waiting for hours, often beginning early in the morning, only to find that daily allocations have already been exhausted.

Industry insiders say the disparity between available stock and retail supply is being driven less by actual shortages and more by behavioral factors.

Panic buying has intensified demand, with consumers refuelling preemptively amid uncertainty.

Mohammad Moin Uddin, a leader of the petroleum dealers’ association, said demand has remained unusually high despite increased supply.

The situation marks a sharp reversal from March, when fears of supply disruptions—linked in part to geopolitical tensions involving the United States, Israel, and Iran—prompted authorities to restrict distribution.

At the time, daily supply was informally reduced by around 100 tonnes as a precautionary measure.

On average, daily octane supply stood at 1,217 tonnes in March, slightly higher than 1,193 tonnes a year earlier.

For April, BPC had initially planned daily sales of around 1,185 tonnes, but officials are now considering increasing supply by up to 25 percent from Sunday in a bid to ease pressure at filling stations.

Alongside octane, petrol reserves stood at approximately 19,500 tonnes as of Friday, sufficient to cover at least two weeks of demand.

Output from five local fractionation plants processing condensate has also helped stabilize the broader fuel supply chain.

To improve distribution management, the government has expanded the pilot phase of the Fuel Pass BD beyond the capital. Motorcycle owners in several districts, including Dhaka, Chattogram, Khulna, and Rajshahi, are now eligible to register under the system, which aims to regulate access to fuel and reduce congestion at pumps.

Still, public frustration remains high. Motorists waiting in long lines have questioned the government’s handling of the situation, with some alleging that the severity of the supply disruption has not been fully acknowledged.

Repeated pump closures and inconsistent availability have added to the strain on daily commuters.

Officials, however, maintain that there is no underlying shortage and argue that the combination of record reserves, steady imports, and policy adjustments—including the latest price revision—will help normalize the market in the coming weeks.

For now, the contrast between record-breaking stockpiles and persistent queues underscores a central challenge: translating macro-level supply security into consistent, on-the-ground availability for consumers.