Energy minister says panic buying and hoarding, not supply gap, causing fuel queues

Some petrol pumps in Dhaka have seen an almost 100 percent surge in demand, he tells parliament

Seeking to quell public anxiety amid long queues at filling stations, Energy Minister Iqbal Hassan Mahmood Tuku informed parliament that Bangladesh has no fuel shortage, attributing the recent instability to panic buying and illegal hoarding.

In a statement delivered in the parliament on Monday, he asserted that fuel supply has actually increased compared with last year, despite the global volatility caused by conflicts in the Middle East.

The minister emphasised that the sight of long queues at pumps is a "psychological" issue rather than a reflection of the total supply chain.

"The real problem now is the tendency to buy more than necessary and store it," the minister said.

He cited data from the Trust Filling Station in Tejgaon, where daily octane sales jumped from an average of 5,400 litres in March 2025 to 10,620 litres in March 2026, a 96 percent increase.

Similar trends were reported across major stations in Dhaka, including Mohakhali and Mirpur, he said.

The minister noted that the same motorcycles are frequently returning to pumps to buy 3-5 litres of octane multiple times, artificially inflating demand.

Highlighting the government's steps to tackle the global energy supply chain instability, he said fuel reserves rose to 218,000 tonnes by Mar 30 from 206,000 tonnes on Feb 17.

The government has launched a massive drive against unscrupulous traders and hoarders who are creating artificial crises or smuggling fuel across borders, he noted.

Authorities conducted 3,168 raids, he said, adding that those resulted in 1,053 legal cases, 16 prison sentences and Tk 7.5 million fines and the recovery of 208,000 litres of fuel, including diesel, octane, and petrol.

The minister also announced rewards for informants providing tips on illegal hoarding or cross-border fuel smuggling.

The minister said the government is providing massive subsidies to keep domestic prices stable despite a nearly 98 percent hike in international diesel prices this March.

Regarding octane supply, he said that initiatives have been taken to import 50,000 tonnes under an agreement signed for April.

Additionally, another 30,000 tonnes will be sourced domestically.

According to his estimates, while the monthly demand for octane is 35,000 tonnes, the government's current plan will be able to meet the demand for approximately two months.

Diesel accounts for 63 percent of the country's total fuel consumption, according to the minister, while octane and petrol represent only 6.08 percent and 6.77 percent respectively.

Based on the demand in March 2025, the fuel supply for March 2026 has been increased by 10 percent to 25 percent, he claimed.

The daily demand for diesel in March last year was 12,000 tonnes, while the demand for octane and petrol stood at 1,200 and 1,400 tonnes, respectively, according to the data presented at the parliament.

In contrast, between Mar 1 and Mar 23 of this year, a total of 28,939 metric tonnes of octane was sold, averaging 1,258 metric tonnes per day, the minister said.