Fuel Supply Increased from Today

The Government has decided to increase the supply of petroleum products across the country from today in an effort to ease unusual pressure in the domestic fuel market. The Bangladesh Petroleum Corporation (BPC) has announced enhanced allocations for diesel, octane, and petrol to stabilise distribution and meet rising demand.

According to BPC, octane supply will be increased by 20 per cent, while petrol and diesel supplies will each be raised by 10 per cent. Officials stated that recent demand has risen by nearly 30 per cent compared with normal levels, whereas supply had been maintained on the basis of last year’s average consumption. This mismatch led to temporary pressure in the market.

To address the situation, district administrations are now involved in setting revised pump-wise allocations to ensure distribution is aligned with actual demand.

Diesel remains the dominant fuel in the country, accounting for approximately 63 per cent of total consumption. In April, diesel demand is estimated at around 400,000 tonnes. Current operational stock stands at about 102,000 tonnes. In addition, over 100,000 tonnes of diesel are expected to arrive through four incoming vessels, while a separate strategic reserve of around 80,000 tonnes has been maintained for emergency use. Due to supply constraints, average daily diesel sales in April had fallen to 11,107 tonnes, but are now set to increase to approximately 13,000 tonnes. For comparison, the average daily sales in the same month last year stood at 11,862 tonnes.

In the case of octane, there is no direct shortage, although demand pressure has increased. Current national stock is approximately 29,484 tonnes, sufficient for around 25 days of consumption. Daily supply is being raised from 1,129 tonnes to around 1,366 tonnes, representing an increase of 237 tonnes. The average daily consumption in April last year was recorded at 1,185 tonnes.

Petrol supply is also being adjusted upward. Existing stock stands at about 18,830 tonnes. Although the average daily consumption in April is currently 1,253 tonnes, an additional 137 tonnes is being added to daily supply. In the same period last year, daily consumption was 1,374 tonnes.

Officials in the energy sector noted that fuel demand typically rises by 4 to 5 per cent annually. However, they attributed the current surge to international market conditions and precautionary bulk purchasing behaviour, which has temporarily pushed demand significantly higher than normal.

The Bangladesh Petrol Pump Owners Association has welcomed the government’s decision to align domestic prices with international oil market movements. According to its Member Secretary, Mir Ahsan Uddin Parvez, this pricing adjustment is expected to reduce unnecessary stockpiling and improve transparency in fuel distribution.

Summary of Key Fuel Data