BPC considering 25pc increase in Octane supply

Public suffering at filling stations has not eased for the past one and a half months. The rush is mainly for octane, with private cars and motorcycles lining up.

Compared to last month, supply has dropped this month, making queues at Dhaka’s pumps even longer each day—despite there being sufficient octane in the country.

In this situation, the Bangladesh Petroleum Corporation (BPC) is considering increasing octane supply to the market starting Sunday. The organisation says supply could be raised by 25 per cent.

BPC is the country’s sole state agency responsible for importing and supplying fuel. It sells fuel through dealers of its three marketing companies—Padma, Meghna, and Jamuna. Officials believe that increasing supply could help reduce long lines at filling stations.

According to data from the Energy Division and BPC, there is currently no shortage of octane in the country. In fact, without increasing supply, storage capacity may run out. Bangladesh has a total octane storage capacity of 45,819 tonnes.

After sales on 15 April, stock stood at 30,667 tonnes—equivalent to 26 days of supply at current rates. A vessel carrying 25,000 tonnes of octane is scheduled to arrive at Chittagong port today. Additionally, at least 700 tonnes of octane are being added daily from local sources.

Officials from BPC and fuel marketing companies say demand at petrol pumps has risen by about 30 per cent. However, pumps are receiving the same allocation as on the corresponding days last year. As a result, some pumps do not receive fuel every day.

The Energy Division is monitoring this closely, and officials face penalties for deviations. To control excess demand, companies are in some cases reducing supply, which has worsened public hardship.

BPC data show that in March last year, average daily octane supply was 1,193 tonnes. Amid increased demand during the conflict, this rose by 26 tonnes to 1,219 tonnes per day this March.

However, supply has decreased by 49 tonnes this April compared to last year, and by 104 tonnes compared to last month. Up to 15 April, average daily depot supply stood at 1,115 tonnes.

BPC Chairman Md Rezanur Rahman told Prothom Alo that even if not from Sunday, they are considering increasing octane supply by 25 per cent starting Monday. There are also plans to boost diesel supply, particularly to meet farmers’ needs.

Officials say local district administrations will be involved in preparing daily fuel allocation schedules for filling stations. When increasing allocations compared to last year, district authorities will assess demand based on current sales and crowd levels at pumps, and recommend where supply should be increased.

Syed Sajjadul Karim, convenor of a faction of the Petrol Pump Owners’ Association, told Prothom Alo that the plan to increase supply by 25 per cent is positive.

However, he emphasised that fuel must be supplied not only to petrol pumps but also to agents, distributors, and dealers; otherwise, pumps alone will not be able to handle the entire customer pressure.

Octane is primarily used as fuel in motorcycles, private cars, and microbuses. It accounts for about 6 per cent of the country’s total fuel supply. In the last fiscal year, 415,000 tonnes of octane were sold, half of which was produced domestically and the rest imported. Demand in April stands at around 37,000 tonnes.

Although octane was once available from state-owned refineries, it is no longer produced there. BPC now regularly procures octane from four private refineries: Super Petrochemical Limited, Partex Petro Limited, Aqua Refinery Limited, and Petromax Refinery Limited. These refineries produce fuel by processing condensate—both imported and derived as a byproduct of gas fields. BPC also obtains octane from fractionation plants operated by state gas companies.

To ease congestion, fuel is being sold via QR codes at seven filling stations in Dhaka. So far, only private motorcycles can be registered under this system; employees cannot register motorcycles owned by companies, and private cars are not yet included. Technical issues have also arisen at times. However, BPC says this is a pilot project, and reported problems are being addressed. The system may be finalised by the end of this month and then expanded nationwide.

Energy expert M Tamim told Prothom Alo that uncertainty over imports may have prevented an earlier increase in supply. Even if supply is raised now, the situation may not be fully brought under control. However, increasing supply would help reduce public panic. He also suggested raising limits on how much fuel can be dispensed per vehicle at petrol pumps.