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Energy crisis: Panic buying fuels rationing

Energy crisis: Panic buying fuels rationing
Front: Motorists form a tense, jostling crowd at a Nilkhet filling station in Dhaka on Friday, scrambling to buy fuel amid fears of skyrocketing prices linked to Middle East tensions. Photo: Shamim-Us-Salehin/TIMES
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Bangladesh introduced nationwide fuel rationing from Friday afternoon after panic buying triggered long queues at filling stations in Dhaka and other regions, although officials said the country has sufficient stocks and more shipments are on the way.

Under the new limits, motorcycles can receive up to 2 litres of fuel, cars 10 litres, microbuses and sport utility vehicles 20 to 25 litres, and pickup trucks 70 to 80 litres.

Commercial vehicles, including long-distance buses, trucks, covered vans and container trucks, are allowed between 200 and 220 litres of diesel to keep goods transport and inter-district travel running.

The move follows a surge in demand amid fears that disruption to oil shipments through the Strait of Hormuz could severely affect supply if the Middle East conflict persists.

Long queues were seen at filling stations in Dhaka’s Poribagh and Shahbagh areas around 4pm on Friday, with motorcycles forming the majority of vehicles waiting for fuel.

Near Nilkhet, two filling stations remained closed as suppliers struggled to deliver fresh stocks.

“We sent a truck yesterday afternoon, but due to a queue it has not arrived yet,” said pump attendant Mohammad Ali.

In Tejgaon, City Filling Station ran out of diesel, octane and petrol by 4pm, forcing staff to shut the pumps as queues stretched along nearby roads.

Long lines also continued during iftar at Messrs Satata & Co and Southern Automobiles Limited, where around 200 to 250 vehicles were waiting at each station.

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“The conflict may create instability in the fuel market. Many people are taking more fuel than they need. In some places there is no fuel at all. The government should check if pumps are trying to stockpile to sell at a higher price,” said SM Azmir Hossain Kollol, a private-sector employee waiting at Meghna Model Service Center in Poribagh.

Ride-sharing worker Nazibur Rahman Nippon said the long queues were affecting daily income.

At Sadik Khan and Shikdar filling stations in the Rayar Bazar–Haziribag area, queues have been seen since Thursday night, with pumps limiting fuel sales to about Tk300 per motorcycle.

“I got only 2 litres of octane after waiting more than two hours in the queue. How will I manage my work if I have to come to the petrol station almost every day?” said Asad Ullah, a small business owner in the capital.

Outside the capital, filling stations across Rajshahi division have also reported shortages of petrol and octane, forcing drivers to wait in long lines and prompting some stations to close temporarily.

According to the Bangladesh Petroleum Dealers, Distributors, Agents and Petrol Pump Owners Association, the division has 279 filling stations across eight districts, but supply has fallen short over the past three days, particularly in Rajshahi city.

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In Sylhet, petrol pumps have seen long queues since Thursday night as buyers rushed to stock up amid fears of supply disruptions.

Officials from the Sylhet Petroleum Dealers Association said fuel supplies remain adequate and urged the public not to panic.

Bangladesh Petroleum Corporation (BPC) imposed the nationwide rationing after fuel demand surged by 50 to 70 per cent last week amid fears of shortages and price increases.

Strict limits on fuel sales per vehicle have been enforced at all 27 fuel depots and more than 2,100 filling stations across the country, said BPC General Manager for Distribution and Marketing Mohammad Zahid Hossain.

The corporation has also deployed 11 monitoring teams nationwide to prevent illegal stockpiling and fuel smuggling.

To stretch supply, BPC has reduced fuel distribution from depots by about 10 per cent, Zahid Hossain said.

Imported petrol, octane and diesel cargoes are expected to arrive within the next ten days and existing reserves are sufficient to maintain supply until then, he told TIMES of Bangladesh.

Five oil tankers carrying fuel are also scheduled to arrive within the next week, which will help build stocks for the next 20 to 25 days.

“If panic buying and hoarding stop, Bangladesh will not see any fuel shortage for the next one month,” he said.

If the Middle East crisis persists, the corporation will source fuel from alternative markets to maintain supply, he added.

Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood urged the public not to panic.

“There is no reason to be anxious. Supply is normal and the government is monitoring the situation closely,” he said.

State Minister Anindya Islam Amit said recent sales had surged because some buyers were purchasing more fuel than necessary.

BPC also urged consumers not to panic over rumours about shortages circulating in the media and on social platforms.

In a press release issued on Friday, the state-run corporation said negative reports about fuel stocks had triggered unusual demand from dealers and consumers.

About 95 per cent of Bangladesh’s fuel demand is met through imports, and shipments are continuing despite the ongoing global crisis, the release said.

Under the rationing framework, consumers must obtain a receipt showing the fuel type, quantity and price at the time of purchase and present the original receipt from the previous purchase when buying fuel again.

Dealers have been instructed to follow the allocation strictly and supply fuel only after collecting the purchase receipt.

Filling stations must also provide information about their fuel stocks and sales to the relevant depot before lifting new supplies.

The corporation warned that fuel must be sold at government-set prices and charging higher prices on the pretext of shortages is a punishable offence.

Fuel prices are set by the government at the beginning of each month and no decision has been taken to increase prices under the current situation.

BPC urged consumers and dealers to follow the directives to help maintain normal fuel supply across the country.

The government on Thursday also issued an energy and power-saving directive urging users to avoid unnecessary consumption during the global crisis threatening national energy security.

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