Fuel supply increased, yet fails to meet demand

Despite an increase in fuel supply from depots following the withdrawal of rationing, filling stations still cannot meet demand. Consequently, queues and waiting times for refuelling have not decreased.

Some stations are shutting down after running out of fuel quickly, while others continue to supply fuel on a rationed basis as before.

The government agency Bangladesh Petroleum Corporation (BPC) is responsible for importing and selling fuel.

On behalf of BPC, three state-owned oil companies—Padma, Meghna, and Jamuna—handle the distribution of fuel to dealers and filling stations. These companies operate depots across various regions of the country.

Approximately 2,500 filling stations collect fuel from these depots, from where petrol, octane and diesel are sold.

According to BPC sources, around 65 per cent of the fuel supplied by the corporation is diesel, which is primarily used in agriculture, industrial factories, and public transport.

The average daily demand for diesel stands at 12,000 tonnes. Following the outbreak of war in the Middle East, fuel sales surged due to panic buying, with average daily diesel sales reaching approximately 25,000 tonnes between 1 and 4 March.

In response, the government reduced supply by 25 per cent, bringing it down to 9,000 tonnes. A similar reduction was applied to petrol and octane supplies.

After the withdrawal of rationing on Sunday, diesel sales reached 16,164 tonnes, and the figure increased further yesterday, Monday.

By comparison, average daily diesel sales stood at 12,777 tonnes in March last year, while the average up to 15 March this year was 13,354 tonnes.

Octane and petrol are primarily used in private vehicles and motorcycles. In March last year, average daily octane sales were 1,193 tonnes, while the average up to 15 March this year was 1,344 tonnes.

To curb abnormal sales following the outbreak of war, authorities set a daily supply limit of 913 tonnes.

However, sales reached 1,698 tonnes last Sunday. Even so, on the eve of the Eid public holidays yesterday, Monday, many people spent long hours waiting in queues at filling stations.

Average daily petrol sales stood at 1,495 tonnes in March last year, while the average up to 15 March this year was 1,386 tonnes. The government had set a daily supply limit of 1,070 tonnes, yet sales reached 1,712 tonnes on Sunday.

Filling station owners report that an abnormal situation has now emerged. Depots cannot meet the excessive demand, and therefore supply fuel within fixed limits.

Once those limits are reached, some stations receive no fuel at all. For instance, yesterday, Monday, a filling station located 130 kilometres from Khulna sent a tanker with a capacity of 13,500 litres to a depot but received only 5,000 litres.

Sayed Sajjadul Karim, convener of the Petrol Pump Owners Association, an organisation representing a section of filling station owners, told Prothom Alo, “Even though supply from depots has increased, it still falls short of current demand. People’s demand now seems insatiable. Even when additional fuel is supplied, it runs out quickly. The government is making efforts, but the situation has become difficult to manage.”

Following the spread of war in the Middle East, a decline in global fuel supply triggered concerns over domestic availability. Driven by panic, consumers initially began purchasing fuel at nearly double the normal rate.

To curb abnormal sales, the government imposed limits on fuel supply from 6 March. Earlier, on 10 March, it relaxed the limit slightly for ride-sharing motorcycles, increasing the cap from 2 litres to a maximum of 5 litres.

In addition, from 7 March, authorities reduced supply to filling stations by 25 per cent below demand.

From 11 March, they increased supply by 10 per cent for filling stations in divisional cities. Subsequently, on Sunday morning, the government announced the withdrawal of rationing.

Between 12:30 pm and approximately 3:00 pm yesterday, Monday visits to six filling stations in the capital revealed long queues of cars and motorcycles waiting for fuel.

Some stations continued to enforce previous limits, while others supplied fuel according to demand. Sellers reported that they were not receiving sufficient fuel from depots to meet demand.

Md Babul Hossain, who came to refuel his motorcycle at Rajarbagh Filling Station, told Prothom Alo, “I have been standing in line for nearly an hour. When I finally got close, I learned they are providing fuel worth only Tk 200. This is not acceptable.”

Md Mozammel Hossain, cashier at Rajarbagh Filling Station, said, “We have not received enough fuel. How can we provide unlimited supply? We are not getting fuel from the depot according to demand. That is why we are giving smaller quantities to everyone.”

At around 1:30 pm, a visit to Binimoy Filling Station at Dainik Bangla intersection showed that it had run out of fuel.

Employee Md Sagar said they had been supplying 5 litres to motorcycles and 10 litres to private cars, but their stock was exhausted by 12:00 noon. Due to insufficient supply from the depot, they could not meet customer demand.

However, at Karim & Sons Filling Station in Motijheel, Ramna Filling Station at Matsya Bhaban intersection, and Meghna Model Servicing Centre Filling Station in Paribagh, staff were seen supplying fuel according to customers’ requirements.

Abdus Salam, owner of Karim & Sons Filling Station, also complained about not receiving adequate fuel from depots. Speaking to Prothom Alo at around 3:00 pm, he said, “We are not receiving fuel from the depot as per demand. Even so, we are supplying according to customers’ needs. However, it appears that our stock will run out before evening. After that, we will not be able to continue sales.”