Bangladesh’s Energy and Mineral Resources Division has sought to reassure markets that fuel supplies remain stable, even as the country’s sole refinery operates at reduced capacity and public concern drives a surge in demand.
A senior official said the situation was being strained more by panic buying than by any underlying supply disruption, describing fears of a shortage as largely “psychological”.
Refinery operating with two units
At the centre of the issue is Eastern Refinery Limited (ERL), the country’s only crude processing facility, which refines around 1.5 million tonnes of oil annually.
Officials confirmed that only two of ERL’s four processing units are currently operational, effectively limiting throughput.
However, they stressed that the refinery continues to function using existing crude reserves, and that the reduced capacity has not significantly affected overall fuel availability.
Some delays to crude shipments — largely attributed to ongoing tensions affecting traffic through the Strait of Hormuz — have disrupted scheduled deliveries for March and April. A fresh cargo from Saudi Arabia is expected to depart around 20 April, with arrival anticipated in late April or early May.
Despite these constraints, authorities insist that supply chains remain intact and that the refinery’s partial operation is being offset by stockpiles.
Stocks remain “comfortable”
Officials said Bangladesh currently holds what they described as comfortable reserves of refined fuel products.
Diesel stocks stand at 101,385 tonnes, while octane reserves total 31,821 tonnes and petrol 18,211 tonnes. Furnace oil inventories are at 77,546 tonnes, alongside 18,223 tonnes of jet fuel.
“These levels are sufficient to ensure no disruption,” Monir Hossain Chowdhury, joint secretary of the energy and mineral resources division said, adding that octane and petrol supplies should remain stable for at least the next two months, while diesel availability is expected to hold through April and May.
Demand surge driven by anxiety
Authorities said the pressure seen at filling stations is primarily the result of increased consumer demand rather than any fall in supply.
Fuel distribution has remained consistent with levels prior to 28 February, but heightened public concern has led to a spike in purchases. In one example cited by officials, a filling station saw daily octane sales jump from around 50,000–54,000 litres to more than 80,000 litres, yet queues persisted.
The government has urged consumers not to hoard fuel, warning that such behaviour risks creating artificial shortages.
Monitoring and reforms
To improve oversight, officials said measures are being introduced to tighten monitoring of fuel distribution, including plans to install tracking devices on tankers and expand a digital “Fuel Pass” system.
Enforcement has also been stepped up. Between early March and mid-April, more than 9,000 mobile court operations were carried out nationwide, resulting in over 3,500 cases and the seizure of more than 500,000 litres of illegally stored fuel.