The US-Israeli war on Iran has set off a panic buying of fuel in Bangladesh, nearly 4,000 kilometers away from the eye of the storm.
it has hardly been surprising. Bangladesh depends heavily on the imports of fuel oil and gas from the Gulf countries, which are now at the center of the con?icts.
iran’s retaliatory missile attacks have shut down oil facilities in many of the Gulf nations, including Qatar, Kuwait, and the UAE. The war entered its second week on March 10, and until that day, the prices of fuel oil jumped over 100 dollars a barrel.
the concerns have been manifold: disruptions in production, transportation, and shipping lines.
the new BNP government, which took of?ce just three weeks ago, winning a massive public mandate, has taken some prompt actions.
in emergency measures, the government has set caps on the supply of fuel -diesel, petrol, and octane – to vehicles and closed down ?ve of the six major urea fertilizer factories to conserve the use of natural gas. Besides urging austerity and patience, the authorities have repeatedly assured that there is no scarcity in the supply of fuel.
there are stocks in the depot and fuel-loaded ships travelling to Bangladesh. Con?dent about the stocks, the government has decided not to raise the fuel prices for now. Yet panic purchase has gripped the country’s 4000 fuel stations, especially the 80 located in the capital city. Motorists have formed long lines before the petrol pumps, pushing up demand amid disrupted supply. Many are buying more than they need amid a tendency to hoard.
irrational buyers are paying little heed to government assurances. The unusual spike in demand amid reduced supply is drying up the petrol pumps, forcing the closure of sales. Tensions have thus gripped the ?lling stations. Scuf?es and altercations have been reported in some places.
in order to boost imports of fuel, Bangladesh has turned to its neighbor, India.
in response to Dhaka’s request, India has started pumping diesel into the 131-kilometre Bangladesh-India Friendship Pipeline that brings the fuel from Numaligarh re?nery in Assam to Parbatipur oil depot in Bangladesh’s Dinajpur district.
this has been a welcome move as Dhaka and New Delhi are resetting their relations, overcoming the bad feelings caused by the downfall of Sheikh Hasina’s government on August 5, 2024.
up to 5,000 metric tonnes of diesel were expected to ?ow through the pipeline by March 11. Bangladesh is to receive 180,000 metric tonnes of diesel annually through this pipeline, which was inaugurated in March 2023.
it has a capacity to supply 200,000 metric tonnes of diesel a year. Meanwhile, Chattogram Port Authority (CPA) has geared up the unloading of fuel on a priority basis.
as ships carrying LPG and LNG from Qatar, Oman, and the United Arab Emirates are arriving at the outer anchorage, berthing the ships at the port is being given emergency treatment. Vessels carrying diesel and furnace oil from Malaysia and Singapore are there to further ease the supply issue.
these imports have been done both under the private and public sectors. So the bottom line here is that there should not be any fear about the supply. Panic buying is what has been causing the chaos at the ?lling stations since the start of the Middle East war.
the current comfortable supply situation should not lead to relaxing vigilance, as the situation in the Middle East still remains volatile and unpredictable.
though President Trump says the war will be over ‘very soon,’ few can trust him.
iran’s new leadership has warned that if the war ends, it will be on their term not on the choices of Israel and the US. So, the Bangladesh government must continue with emergency measures to avert worsening the situation