The Government has decided to increase the supply of petroleum products across the country with effect from today in response to unusual pressure in the domestic fuel market. The Bangladesh Petroleum Corporation (BPC) has confirmed that additional allocations have been made for diesel, octane and petrol in order to stabilise distribution and better align supply with demand.
Under the revised arrangement, octane supply will rise by 20 per cent, while petrol and diesel supplies will each be increased by 10 per cent. Officials said that recent market conditions have seen demand surge by approximately 30 per cent compared with normal levels. In contrast, supply levels had remained based on the previous year’s average consumption, creating a gap between demand and availability and contributing to market strain.
To manage distribution more effectively, district administrations are now working alongside fuel authorities to implement pump-wise allocation systems. This is intended to ensure that fuel is distributed according to actual consumption patterns rather than uniform historical estimates.
Diesel remains the most widely used fuel in the country, accounting for roughly 63 per cent of total petroleum consumption. For the month of April, diesel demand is estimated at around 400,000 tonnes. At present, operational stock stands at approximately 102,000 tonnes. In addition, more than 100,000 tonnes are expected to arrive through four incoming shipments, while a further strategic reserve of around 80,000 tonnes has been maintained for emergency use. Due to earlier supply constraints, average daily diesel sales in April had dropped to 11,107 tonnes. From today, this figure is expected to rise to around 13,000 tonnes, compared with 11,862 tonnes recorded in the same period last year.
In the case of octane, there is no immediate shortage, although demand pressure has increased. Current national stock is estimated at 29,484 tonnes, which is sufficient for roughly 25 days of consumption. Daily supply is being raised from 1,129 tonnes to about 1,366 tonnes, an increase of 237 tonnes. For reference, average daily consumption in April last year was 1,185 tonnes.
Petrol supply is also being adjusted upwards. Existing stock is recorded at approximately 18,830 tonnes. While the present average daily consumption is 1,253 tonnes, supply is being increased by an additional 137 tonnes per day. In April last year, average daily consumption stood at 1,374 tonnes.
Officials in the energy sector have stated that fuel demand typically increases by 4 to 5 per cent annually. However, they noted that this year’s sharper rise is linked to international market conditions and precautionary bulk purchasing by consumers, which together have pushed demand significantly above expected levels.
The Bangladesh Petrol Pump Owners Association has welcomed the government’s decision to adjust domestic fuel pricing in line with international market trends. Its Member Secretary, Mir Ahsan Uddin Parvez, stated that the move is expected to reduce unnecessary stockpiling behaviour and improve transparency in fuel distribution across the supply chain.
Fuel Supply Overview
| Fuel Type | Current Stock | Daily Supply (Previous) | Daily Supply (Revised) | Increase | Key Note |
|---|---|---|---|---|---|
| Diesel | ~102,000 tonnes (+100,000 incoming; 80,000 reserve) | 11,107 tonnes | ~13,000 tonnes | Higher output planned | Accounts for bulk consumption |
| Octane | 29,484 tonnes (≈25 days’ supply) | 1,129 tonnes | 1,366 tonnes | +237 tonnes | Stable supply position |
| Petrol | 18,830 tonnes | 1,253 tonnes | +137 tonnes | Increased allocation | Below last year’s demand level |