The government plans to build a minimum 90-day fuel reserve to strengthen energy security amid global uncertainties.
State Minister for Power, Energy and Mineral Resources Aninda Islam Amit said authorities are expanding stockpiles while assessing storage infrastructure.
“Our plan is to maintain at least 90 days of fuel reserve. This will be implemented gradually,” he told TIMES of Bangladesh.
“We are reviewing storage options, identifying state-owned facilities, and exploring the use of private sector capacity,” he added.
He said the ongoing war in the Middle East has created global supply risks and Bangladesh must avoid any fuel crunch.
“The world has entered a new normal where fuel disruptions can happen anytime. We must prepare accordingly,” he said.
Bangladesh currently has fuel storage capacity for around 30–45 days, including floating storage, according to Bangladesh Petroleum Corporation (BPC).
“There are very few countries with more than a 90-day strategic reserve,” said energy expert M Tamim.
“Without private sector involvement, building such storage is not possible, and we need a clear plan with infrastructure, financial investment, and a defined timeline,” he added.
Energypac Managing Director Humayun Rashid said a 90-day reserve may not be necessary for locally sourced fuels, but imported fuels require stronger stockpiles.
BPC sold 4,15,653 tonnes of octane and 4,62,475 tonnes of petrol in the fiscal year 2024–25. The entire petrol and around half of the octane were sourced from local refineries that use condensate from gas fields.
A decade ago, local gas fields supplied 100 per cent of refiners’ condensate, which has now dropped to 60 per cent. Refineries now need to import condensate.
Existing reserves of two to four weeks for octane and petrol are sufficient if hoarding and speculative buying are controlled, said Humayun Rashid.
However, he said building storage for diesel is critical.
“The government should immediately utilise unused storage for emergency reserves and facilitate private investment in storage tanks for long-term energy security,” Rashid added.
Bangladesh consumes more than 68 lakh tonnes of petroleum products annually, including 5,47,804 tonnes of jet fuel and 43,50,075 tonnes of diesel in the fiscal year 2024–25.
Around 20 lakh tonnes of additional storage capacity could be added within 7–9 months with nearly $1 billion in private investment, said Youth Group Company Secretary Yeasin Ahmed.
“Even octane and petrol reserves can be built up to 90 days with this investment,” he added.
Seacom Group Chairman Mohammed Amirul Haque said his company is ready to invest in a 2-lakh tonne fuel storage facility if policy support and returns are ensured.
Super Petrochemical Managing Director Mohammad Mustafa Haider told TIMES the government should consider larger-scale private investment in the petroleum sector to improve efficiency.
For a decent return on investment, companies would require a multi-layer presence, including imports, refining, storage, and retail distribution, he said.
East Coast Group Chairman Azam J Chowdhury said inventory should be calculated based on backbone storage, not fuel in transit or held at depots and filling stations.
“We have long been requesting the government to allow private sector participation in petrol and diesel import and distribution,” he said.
Since the products are sensitive, only capable companies with the required infrastructure, financial strength, and safety practices should be allowed, he said.
Gasoline and diesel capacity should not expand in the same way as the liquefied petroleum gas (LPG) sector, he said.
The private sector has built LPG storage capacity of 3 million tonnes, nearly double the annual market demand.
“Private sector capacity should be built alongside the public sector, under a structured policy with good governance,” Azam J Chowdhury added.
