Fuel Fog

Ba ngladesh’s fuel situation is marked by a widening gap between of?cial assurances and public experience. Despite government claims of adequate supply, long queues, reduced deliveries at pumps, and operational disruptions suggest underlying supply chain inef?ciencies and panic buying. Delays in imports, re?nery constraints, and rising global prices have intensi?ed pressure on the system. With subsidies mounting and prices unchanged, the crisis re?ects both structural weaknesses and policy challenges, raising urgent questions about pricing, distribution, and overall energy management.

omething doesn’t add up in Bangladesh’s fuel story.

on paper, there is no shortage.

of?cials insist supplies are steady, reserves are adequate, and imports are continuing. But on the streets, a very different picture is unfolding – one of long lines, anxious consumers, and growing frustration.

this disconnect between of?cial assurances and everyday experience is beginning to erode public con?dence. As queues stretch for hours and uncertainty deepens, the real question is no longer whether fuel is available – but whether the system delivering it is working at all.

the Energy Division has most recently claimed that there will be no shortage of diesel, octane, or petrol until May. But queues at petrol pumps across the country are growing longer by the day. According to various media reports, motorcyclists and vehicle owners are waiting 12-14 hours to refuel.

even after such long waits, many reach the pump only to be told that fuel has run out and they must wait for the next supply.

to reduce disorder, fuel card systems have been introduced in several districts, reportedly bringing some discipline to fuel distribution. However, no such improvement is visible in the capital. Speaking to the media, Energy Division spokesperson and Joint Secretary Monir Hossain Chowdhury claimed that fuel supply to pumps remains the same as last year. He attributed the crisis to panic buying-consumers purchasing more fuel than needed.

this claim, however, has been challenged by Mohammad Nazmul Haque, President of the Bangladesh Petrol Pump Owners Association. He stated that the Ramna Filling Station received between 28,000 and 31,000 liters of fuel daily in March, but that ?gure dropped to 16,000-18,000 liters in early April, even as queues grew signi?cantly longer.

to restore order in Dhaka, authorities recently launched a ‘fuel pass’ app for motorcycles.

initially introduced at two ?lling stations, the system is expected to expand to seven stations and eventually nationwide by May. According to the Energy Division, more than 110,000 riders have already registered. However, users report dif?culties logging into the app and delays in obtaining fuel passes.

even after securing a pass, many still have to wait in the same long queues, limiting the system’s effectiveness.

although pass holders may receive slightly more fuel, the initiative has yet to signi?cantly reduce congestion. Many fuel station owners believe that expanding the fuel card system nationwide could help control panic buying and restore order.

in the capital, long queues have worsened traf?c congestion, creating a new urban challenge where valuable fuel is wasted while vehicles remain stuck in traf?c.

the crisis has also raised questions about whether Dhaka has suf?cient fueling infrastructure. While government of?cials deny any shortage of ?lling stations, energy expert Dr.

ijaz Hossain, former dean of Bangladesh University of Engineering and Technology, suggests otherwise. Based on estimates using AI, he noted that Dhaka would require at least 350 ?lling stations, whereas currently fewer than 100 are operational.

even under normal conditions, this shortfall causes delays-now magni?ed under the present crisis. Meanwhile, reports that the country’s only re?nery, Eastern Re?nery Limited (ERL), is nearing shutdown due to crude shortages have further fueled public anxiety.

of?cials maintain that ERL has not fully stopped but is operating at low capacity using remaining stock, though a complete shutdown is expected within days. Despite this, authorities insist that there will be no disruption in fuel supply, as re?ned fuel imports from alternative sources continue.

eRL accounts for only about 15% of the diesel and 12% of the petrol supply in the domestic market. Government data show that in FY2024-25, diesel demand was 4.742 million metric tonnes, with ERL supplying 15.44%, while petrol demand was 489,000 metric tonnes, with ERL contributing 11.92%.

eRL does not produce octane.

the Energy Division explained that crude oil shipments from Saudi Arabia scheduled for March were delayed due to the ongoing U.S.-Israel-Iran con?ict. However, a vessel carrying 100,000 tonnes of crude is expected to depart in April and reach Bangladesh by early May.

once received, ERL is expected to resume full operations.

of?cials remain con?dent that the temporary disruption will notsigni?cantly impact fuel supply during April and May. Yet for consumers standing in long queues every day, the question remains unresolved: how long will this fuel crisis actually last? At the same time, mobile courts deployed by the Energy Division are continuing nationwide drives to prevent fuel smuggling and illegal hoarding. Of?cials reported that between March 26 and April 14, 2026, a total of 9,116 operations were conducted nationwide, recovering 542,236 liters of illegally stored fuel. During these operations, 3,510 cases were ?led, 45 individuals were sentenced to imprisonment, and ?nes amounting to Tk 15.6 million were imposed.

energy Division spokesperson Monir Hossain Chowdhury assured journalists that there will be no fuel shortage in April and May. He added that efforts to import fuel from sources outside the Middle East are ongoing.

as of April 14, 2026, the country holds reserves of 101,385 metric tonnes of diesel, 18,211 metric tonnes of petrol, and 32,000 metric tonnes of octane. Diesel imports via pipeline from India are also continuing. Not only Energy Division of?cials, but also the energy minister, state minister, ?nance minister, and the prime minister’s advisers have repeatedly asserted that there is no fuel crisis. However, public con?dence remains weak.

authorities argue that the crisis is largely driven by hoarding for pro?t and panic buying fueled by uncertainty. Although fuel rationing was introduced in early March, it was withdrawn before Eid-ul-Fitr.

initially, fuel supply at pumps was reduced by 20-25% compared to the same period last year, but has since been restored to previous levels. Despite this, the persistence of long queues indicates that consumers are still purchasing more fuel than necessary. Pump owners, however, dispute the government’s claims, stating that while supply matched last year’s levels in late March, it has declined again since early April. Media reports suggest that fuel shortages are already affecting river transport and lighterage operations at ports.

irrigation activities, which depend on open-market diesel, are also being disrupted due to insuf?cient supply. Load-shedding has further intensi?ed the situation, increasing demand for diesel to run standby generators in industries. While factories initially received diesel through association certi?cations, many ?lling stations have stopped supplying under this arrangement.

as a result, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has sought diesel allocation directly from the BPC. BGMEA President Mahmud Hasan Khan warned that failure to ensure adequate diesel supply could trigger a new crisis for the already vulnerable garment sector. When asked why long queues persist despite claims of adequate supply, Sha?qul Alam, Chief Energy Analyst, Bangladesh at the Institute for Energy Economics and Financial Analysis, said the situation is dif?cult to explain de?nitively. He acknowledged that panic buying is evident, but of?cial stock ?gures suggest there should not be a shortage.

according to him, the crisis began intensifying in mid-March when fuel rationing was introduced, leading to widespread hoarding- supported by the large volumes of illegally stored fuel recovered during enforcement drives.

although normal supply has since resumed, conditions at fuel stations have not returned to normal.

in contrast, similar crises in other Asian countries were short-lived, as they adjusted fuel prices to stabilize the market.

in Bangladesh, fuel prices have not been adjusted since February 1, despite global market ?uctuations. State Minister for Power, Energy and Mineral Resources Anindya Islam Amit stated in late March that the Bangladesh Petroleum Corporation (BPC) is incurring daily losses of Tk 167 crore, which could amount to more than Tk 5,000 crore per month.

economist Mamun Rashid argued that failing to align domestic fuel prices with international markets is not sustainable, and that while price increases may have short-term impacts, they would be bene?cial in the long run. Global crude oil prices surged from $68 per barrel to $120 following the outbreak of war, later easing to around $98 during cease?re discussions, though volatility continues. During this period, most Asian countries-including Pakistan, India, Myanmar, Vietnam, Indonesia, and Thailand-adjusted fuel prices. Pakistan, for instance, increasedprices by 77%, with diesel now costing around Tk 235 per liter in Bangladeshi currency. Bangladesh remains an exception. Many analysts believe that keeping prices unchanged is encouraging panic buying, while contributing to long queues.

adjusting prices in line with global markets, they argue, could help ease demand pressure and restore stability in the fuel supply system. During the ongoing session of the national parliament, Finance Minister Amir Khosru Mahmud Chowdhury stated that an additional Tk 36,000 crore will be required this ?scal year to provide subsidies to the energy sector.

in the current budget, Tk 46,000 crore has already been allocated for subsidies in the power and energy sectors.

energy Minister Iqbal Hasan Mahmood informed parliament that the government is considering increasing fuel prices. Meanwhile, Prime Minister’s Adviser Zahed Ur Rahman recently told journalists that, given the current global situation, the government is actively reviewing the possibility of raising fuel prices. Recently, Prime Minister Tarique Rahman, speaking at an online conference of the Asia Zero Emission Community Plus, sought $2.0 billion in support from development partners to meet urgent energy needs. Due to war-related disruptions and rising global fuel prices, Bangladesh is facing signi?cant pressure. Not only fuel oil, but also higher LNG import costs and increased power generation expenses have sharply intensi?ed the ?nancial burden on the country’s importdependent energy sector. While the government is seeking external support to manage this pressure, it remains uncertain how long the situation can be sustained without adjusting domestic prices.

of?cials continue to claim that the country holds at least two months of fuel-diesel, octane, and petrol- reserves based on actual demand. Experts acknowledge that the government has shown prudence in sourcing re?ned fuel from outside the Middle East. However, petrol pump owners argue that they are not receiving suf?cient supplies-sometimes even less than during the same period last year-raising critical questions about where the imbalance lies.

analysts suggest that the government should immediately investigate the issue to identify inef?ciencies or losses in the supply chain from depots to fuel stations.

if supply is indeed lower than last year, it should be increased accordingly. Many also point out that the number of vehicles-especially petrol- and octane-run cars and motorcycles-is rising every year, meaning daily supply may need to be increased by at least 10% compared to last year.

others argue that Dhaka lacks an adequate number of refueling stations and suggest adding more dispensing units at existing facilities.

there are also concerns that diesel may be smuggled to neighboring India, where prices are higher, highlighting the need for stronger monitoring. Many energy analysts and economists believe that large subsidies are currently being provided on fuel, and that adjusting prices to re?ect market realities would help reduce panic buying.

they argue that such a move would gradually ease pressure at fuel stations and restore normalcy.

there is also hope that the ongoing cease?re in the Middle East will lead to a more durable resolution. While global oil prices may not fall rapidly, normalization of shipping-especially through the Strait of Hormuz-would signi?cantly improve supply conditions for Asian countries. Bangladesh’s energy sector is now under growing ?nancial stress.

in recent years, the BPC has largely remained in a comfortable position, needing subsidies in only one year since 2021 and even building up pro?ts of around Tk 20,000 crore. But that cushion is beginning to erode. With global fuel prices rising and domestic prices unchanged, losses are mounting again, raising concerns about how long the government can continue absorbing the cost without putting additional strain on public ?nances.

against this backdrop, restoring order to the fuel system is becoming increasingly urgent.

that means not only ensuring adequate supply, but also tightening oversight and making systems like fuel passes work effectively across the country.

equally important is how decisions are made. Policies imposed without consultation tend to create confusion and resistance. Bringing fuel suppliers, businesses, and consumers into the conversation can make solutions more practical and easier to implement. Without that kind of coordinated approach, the long lines at fuel stations are unlikely to disappear anytime soo

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