As the reduction in the supply of fuel in the market has led to an increased crowds at filling stations, Bangladesh Petroleum Corporation (BPC) has now planned to increase supply and alleviate people's suffering.
The supply of octane, petrol, and diesel is being increased in the market from today, Sunday.
BPC is the sole government agency responsible for the import and supply of fuel oil in the country. They sell oil through the sales representatives of their three marketing companies: Padma, Meghna, and Jamuna.
A section of BPC officials informed Prothom Alo on Saturday that instructions have been given to the oil marketing companies on Saturday night to provide additional fuel supply.
BPC officials say that there is a 30 per cent increase in demand from petrol pumps compared to normal times. However, they are instructed to provide the same amount of oil as taken the same day last year.
In the process of implementing this, the supply of fuel has fallen even below last year’s level. Now, based on last year’s list, allocation orders for daily fuel supply to filling stations will be prepared by increasing the supply from that baseline.
In this regard, assistance will be taken from the local district administration. The district administration will assess demand by considering current sales at the pumps and the volume of customers. Based on this assessment, they will recommend increasing the fuel supply.
Among the fuel oils used in the country, diesel is the main one, accounting for 63 per cent of total fuel oil. Some shortages have arisen as ships have failed to arrive on time due to the start of war in the Middle East. Due to six diesel shipments failing to arrive last month, the diesel inventory has decreased by 150,000 tonnes.
The fear due to the war has led to a tendency to buy extra fuel. Following this, the supply of diesel was reduced. The government is taking initiatives to import diesel from alternative sources. Meanwhile, existing suppliers have increased the supply of diesel.
The Energy and Mineral Resources Division says that the demand for diesel in April is approximately 400,000 tonnes. There are currently around 102,000 tonnes of diesel in stock. More than 100,000 tonnes of diesel is being added through four more incoming ships.
Apart from this, another 80,000 tonnes of diesel is in stock, which can be used in emergencies if needed. Moreover, imports are underway. Up to April 17th of this month, an average of 11,107 tonnes of diesel is being sold daily. In April last year, an average of 11,862 tonnes of diesel was sold daily. The supply is set to increase by 10 per cent today to 13,048 tonnes.
State Minister for Power, Energy, and Mineral Resources Anindya Islam Amit told Prothom Alo that the demand should not increase by more than 4 to 5 per cent annually. The unusual demand seen in the market is actually not logical. However, people are experiencing difficulties and suffering.
Therefore, there is a thought to increase the fuel oil supply.
Increasing octane supply
According to information from the energy department and BPC, the total octane storage capacity in the country is 45,819 tons. After the sale on April 17th, the octane stock is 29,484 tons, which is a 25-day reserve considering the current supply.
A ship with 25,000 tons of octane arrived at the Chittagong port last Friday. Once unloaded, this will exceed capacity. Octane is also added daily from domestic sources. There is currently no shortage of octane in the country.
Petrol pump owners say that it is mainly for octane and petrol that people are flocking to filling stations. Hence, increasing their supply is crucial. Most filling stations sell all oil within three to four hours. However, fuel must be supplied not only to petrol pumps but also to agents, distributors, and dealers. Otherwise, the petrol pump will not be able to handle all customer pressure. In particular, the diesel supply needs to be increased for all sales representatives.
Octane is typically used as fuel in motorcycles, private cars, and microbuses. It constitutes 6 per cent of the total fuel supply annually. In the last financial year, 415,000 tons of octane were sold in the country. Of this, 50 per cent is produced domestically, and the remaining 50 per cent is imported.
According to BPC, last March, an average of 1,193 tons of octane was supplied daily. Due to increased demand from the war, this March witnessed a supply increase of 26 tons per day, reaching 1,219 tons. Later, BPC reduced the supply. Compared to last year, this month has seen a daily average supply decrease of 56 tons so far. Compared to last month, this month''s daily average supply decreased by 90 tons.
Up to April 17th, the average daily supply from the depot was 1,129 tons of octane. Last year in April, the daily average sale of octane was 1,185 tons. Starting today, an additional 237 tons will be added to provide increased octane supply.
In motorcycles, along with octane, petrol is also used. Some people use petrol in older private cars as well. Petrol is used to run CNG auto-rickshaws, leguna (public transport vehicles), grass cutters, etc. Petrol makes up about 7 per cent of the fuel supply in the country. It is 100 per cent domestically produced, but condensate needs to be imported as a raw material.
Currently, there is an 18,830-ton reserve of petrol. In April, an average of 1,253 tons of petrol is being sold daily. In April last year, the daily average sale was 1,374 tons. From today, the supply is set to increase by an additional 137 tons.
Ijaz Hossain, former professor of BUET and energy expert, told Prothom Alo that increasing supply is positive. However, it alone may not solve the problem. People have fears regarding the availability of oil.
Additional initiatives need to be taken. For example, the sources of oil supply in Dhaka need to be increased. The scope of oil availability needs to be expanded using QR codes. The issues of increased demand and management also need to be reviewed.