Eid bank closure chokes fuel supply from depots, sparks panic buying at pumps 

• Seven-day bank holiday prevents dealers from issuing pay orders
• Motorists grapple with long queues and intermittent shortages
• Minister attributes current situation to panic buying
• Refuelling station owners raise security fears 

Filling stations across the country received far less supplies than required as prolonged bank closures during Eid-ul-Fitr disrupted fuel distribution from depots, leaving motorists grappling with long queues and intermittent shortages.

Officials from Bangladesh Petroleum Corporation (BPC) and pump owners say the seven-day banking holiday from 17 to 23 March created a critical bottleneck in the fuel supply chain.

During the period, filling station owners were unable to issue pay orders – a prerequisite for lifting fuel from depots – effectively halting regular distribution.

Without access to banking services, dealers found themselves unable to procure fuel even as demand surged ahead of and during the Eid holidays.

While the government maintained that there was no actual shortage of fuel, pump owners said they were getting inadequate supplies, exposing them to chaotic scenes and even threats from frustrated customers. 

Reports from major cities indicated that pumps were facing acute supply shortage of octane–- primarily used by cars and bikes. 

BPC officials said supply disruptions were linked to delays in issuing pay orders, noting that in previous long holiday periods, authorities had instructed selected bank branches to remain open to facilitate emergency transactions for fuel dealers.

This time, however, the absence of such arrangements worsened the situation.

Compounding the problem, global supply uncertainties – particularly disruptions in the Strait of Hormuz over the Middle East war – have also affected external fuel sourcing.

Bangladesh meets its entire petrol demand from local processing of condensate, a gas by-product, while around 60-65% of octane demand is met domestically, with the remainder dependent on imports. The external disruptions prompted BPC to adopt a cautious approach in releasing fuel.

Despite the visible strain at retail points, Power, Energy and Mineral Resources Minister Iqbal Hasan Mahmud Tuku dismissed concerns of an actual shortage, attributing the current situation to panic buying.

"There is no shortage of fuel in the country," the minister said while speaking to reporters at the Secretariat in Dhaka yesterday. "However, people have started purchasing more than they actually need, causing filling stations to run out of stock earlier than usual."

However, pump owners paint a different picture, pointing to reduced allocations and logistical challenges. Nazmul Hoque, president of the Bangladesh Petrol Pump Owners Association, told TBS that many stations are receiving significantly less fuel than required.

"I am receiving half of what I demand. Panic buying and supply constraints have made the whole situation messy," said Nazmul, who operates Ramna Petrol Pump, adding that the bank closures further deepened the crisis by preventing the timely issuance of pay orders.

The situation appears particularly acute in Chattogram, where multiple filling stations reported sharp declines in supply, especially of octane.

At the Shamanta CNG filling station in the Chandgaon Bahir Signal area, monthly allocations dropped drastically. The station, which previously received eight fuel tankers per month from Jamuna Oil Company Limited, is now getting only one tanker per week.

"Our main crisis is the lack of normal oil supply from Jamuna," said station manager Hasan Tarek. "We are currently unable to supply octane. The stock we received before Eid ran out quickly, and supply has been suspended for three consecutive days."

Similar complaints were echoed at various other petrol pumps in the port city.

Meanwhile, the impact on commuters and drivers was severe. "No octane" signs were common at many stations, while others were rationing fuel.

Absar Hossain, a motorist waiting near the Gani Bakery area, described his ordeal: "I have been searching since last evening but couldn't find octane anywhere. Even when I did, they wouldn't give more than a small amount."

Ride-share driver Abdur Rahman said the shortage has directly affected his income during what should have been a peak earning period. "I had to stand in line for more than half an hour, and still couldn't get enough fuel to operate properly," he said.

A widespread shortage of petrol and octane disrupted fuel supply across the country. Reports from Rajshahi, Dinajpur, Bogura, Savar, and Ashulia revealed that most pumps remained closed.

Security fears

Meanwhile, the Bangladesh Petrol Pump Owners Association on Sunday warned that fuel stations across the country may shut down due to mounting security concerns and an ongoing fuel supply shortage.

The association said petrol pumps nationwide are facing a "critical situation" as the daily fuel allocation from companies is insufficient to meet growing consumer demand.

The organisation alleged that the issue of security in fuel marketing has been largely overlooked by the government and local administration, leading to increasing disorder at pump stations.

Citing recent incidents, the association said that despite having around 10,500 litres of petrol and an equal amount of octane at one pump ahead of Eid, and about 8,000 litres at another, the stock was depleted within a short period due to excessive pressure and chaotic situations.

Describing the situation as a form of "looting," the association claimed that some individuals are purchasing fuel multiple times a day and reselling it at higher prices. 

In some cases, motorcyclists were reportedly refuelling up to 10 times daily, while others repeatedly returned with partially filled tanks, depriving genuine customers.

The association also alleged that organised groups have been forcibly opening pumps at night and taking fuel. 

Referring to an incident in Thakurgaon, it said miscreants armed with sticks looted fuel during supply operations.