Fuel Supply Increased to Stabilise Market

The government has decided to increase the supply of fuel oil across the country from today in an effort to ease unusual pressure in the domestic energy market. The Bangladesh Petroleum Corporation (BPC) has confirmed that additional allocations of diesel, octane and petrol will be released to distributors to stabilise availability at the pump level.

Under the revised distribution plan, octane supply will rise by 20 per cent, while petrol and diesel allocations will each be increased by 10 per cent. Authorities said the adjustment is aimed at addressing the imbalance between rising demand and previously maintained supply levels based on last year’s averages.

Rising demand and supply gap

Officials and industry sources report that fuel demand has surged by nearly 30 per cent compared with normal levels in recent weeks. However, supply had continued to be distributed according to last year’s average consumption patterns, which failed to match the sudden increase. This mismatch created temporary shortages in several parts of the country.

To address the situation, district administrations are now working alongside fuel station operators to set revised, station-specific quotas based on actual demand patterns, ensuring more accurate distribution.

Diesel dominates consumption

Diesel remains the dominant fuel in the country, accounting for around 63 per cent of total petroleum consumption. In April alone, demand for diesel is estimated at approximately 400,000 tonnes. Current usable stock stands at around 102,000 tonnes, with additional shipments of more than 100,000 tonnes expected to arrive on four vessels. A further strategic reserve of around 80,000 tonnes has also been set aside for emergency use.

Despite constrained availability earlier in the month, daily diesel sales, which had fallen to an average of 11,107 tonnes, are expected to rise to around 13,000 tonnes following the new supply adjustment. By comparison, last year’s daily average for the same period stood at 11,862 tonnes.

Octane and petrol situation

Although no acute shortage of octane has been reported, demand pressure remains high. The country currently holds approximately 29,484 tonnes of octane, sufficient for around 25 days of consumption. Daily supply will be increased from 1,129 tonnes to 1,366 tonnes, an additional 237 tonnes. Last year’s average daily sales stood at around 1,185 tonnes.

Petrol supply is also being increased. Existing stock is estimated at 18,830 tonnes. While average daily sales in April stood at 1,253 tonnes, an additional 137 tonnes will now be added to daily distribution. In the same period last year, daily consumption averaged 1,374 tonnes.

Fuel supply data overview

Market outlook

Energy sector officials note that annual fuel demand typically rises by 4–5 per cent. However, this year’s increase has been significantly higher due to global market volatility and panic-driven purchasing behaviour.

The government’s intervention is therefore aimed at aligning supply with real-time demand in order to restore stability in the fuel market.

The Bangladesh Petrol Pump Owners Association has welcomed the move. Its Member Secretary, Mir Ahsan Uddin Parvez, said the revised pricing and supply mechanism would help reduce unnecessary stockpiling and improve transparency in fuel distribution.