Middle East tensions spur fuel price hike rumours; demand jumps fivefold in Khulna

Rumours that fuel prices may rise due to instability in the Middle East have triggered panic buying in Khulna, pushing demand at local depots to nearly five times the usual level.

The sudden surge has increased pressure from tanker lorries at the depots of Padma Oil Company, Meghna Petroleum and Jamuna Oil Company in the city's Daulatpur area.

Petrol pumps are also selling far more fuel than usual, while many bus and truck drivers have to queue to refuel.

Depot sources said pump owners are now lifting far more fuel than usual from depots. However, they said there is no fuel shortage in the country and that rumours and panic have created the abnormal demand.

Md Mahfuz Biswas, manager of M/S Nagar Petroleum Service Station in the city's Fulbarigate area, said the station normally sells no more than 5,500 litres of petrol, diesel and octane daily.

"But due to the rumours, daily sales have risen to 25,000-30,000 litres," he said. "Many people are trying to buy more fuel than they actually need, and some are even bringing containers to store extra fuel."

He said the station is following Bangladesh Petroleum Corporation (BPC) instructions and is not selling fuel in containers or beyond the permitted limit.

Notices have been placed at the pump stating that selling fuel in plastic or glass bottles, containers, jars or cans is strictly prohibited.

Biswas said they are receiving fuel from depots according to demand.

"Fuel prices also remain unchanged despite the weekly holiday on Friday," he said.

Petrol is being sold at Tk116 per litre, diesel at Tk100, and octane at Tk120, he added.

Depot officials said fuel from Khulna depots is supplied daily to several districts across the southwestern region.

Although the sudden panic-driven demand has created pressure on supply operations, they expect the market to stabilise once the panic subsides.

Md Habibur Rahman, deputy manager of Meghna Petroleum Limited, said fuel demand has increased nearly fivefold.

"Earlier, a pump that lifted fuel worth about Tk20 lakh per week is now taking nearly Tk1 crore," he said.

However, he said the fuel is not being diverted elsewhere and is mostly being stored by consumers.

"Someone who normally needs 20 litres a week is now buying 100 litres, fearing they may not get fuel later," Rahman said. "Such misconceptions have spread and increased demand, though our depots have sufficient fuel in stock."

He said many distributors and pump owners are also trying to stock fuel in advance due to concerns that global oil prices could rise amid instability in the Middle East.

As a result, Khulna depots are facing pressure from unusually high withdrawal requests.

"We are not supplying additional fuel to the same pumps and are maintaining previous demand levels to keep distribution balanced," he said.

Because of the pressure on supplies from Khulna depots, some petrol pumps in districts across the southwest have introduced limited fuel sales.

In some places, pumps have set limits on the amount of fuel motorcycles can purchase.

Meanwhile, the heavy crowd at pumps has caused difficulties for drivers in the transport sector.

Abdul Karim, a bus driver operating on the Khulna-Jashore highway, said it is no longer easy to get fuel at pumps.

"We often have to stand in line for a long time, which makes it difficult to start trips on time," he said.

Truck driver Md Saiful Islam said he previously could refuel within 10-15 minutes, but now long queues are common.

"Sometimes pumps are also selling limited amounts of fuel, which delays goods transport," he said.

Truck owner Shahidul Islam said cargo vehicles need to operate daily, but insufficient diesel supply at pumps is forcing some trucks to remain idle.

"This increases both transport costs and delivery time," he said.

Bus supervisor Rahmat Ali said they are often unable to fill their tanks completely.

"We have to start routes with less fuel and refuel again midway. Fuel is also not available at every pump," he said.

Responding to the situation, Md Mahfuz Biswas, manager of M/S Nagar Petroleum Service Station, said pumps are selling fuel according to the decisions taken by depot authorities.