Panic buying hits Savar fuel stations as Iran crisis sparks supply fears
In order to manage the sudden surge in demand and dwindling stocks, fuel pump authorities have imposed caps on fuel sales, leading to frustration among motorists who were forced to move from one station to another to fill their tanks.
Fuel stations in the capital and surrounding areas, including Savar, witnessed overwhelming crowds today (6 March) as consumers rushed to stockpile fuel amid fears of supply disruptions and price hikes triggered by the escalating conflict in the Middle East.
Long queues of vehicles were seen at several filling stations in Savar's municipal area, including SI Chowdhury, Afzal, and Sahara filling stations.
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Upon site visits by The Business Standard, the correspondent found that in order to manage the sudden surge in demand and dwindling stocks, fuel pump authorities have imposed caps on fuel sales, leading to frustration among motorists who were forced to move from one station to another to fill their tanks.
"We last received fuel from the depot on Wednesday (4 March). We got 4,500 litres of octane and 13,500 litres of diesel, but that stock is nearly exhausted," said Md Shahin Alam, manager of Afzal Filling Station.
He noted that while their daily demand is usually 2,000 litres of octane and 5,000 litres of diesel, demand has multiplied several times over the last three days.
"To ensure more people get at least some fuel, we have limited sales to Tk500 for motorcycles, Tk1,000 for cars, and Tk1,500 for long-haulers."
The filing stations' authorities cautioned of the uncertainty regarding whether the local depot will disburse the required supply of fuel by Sunday (8 March).
'Trying to get enough'
Ruhul Ahmed, a youth waiting at Sahara Filling Station, shared his ordeal, "I got Tk100 worth of fuel from one pump and Tk500 from another after standing in line for a long time.
"With the war [Iran-Israel-US war] going on, I am trying to get enough fuel to last until Eid."
Similarly, ride-share bikers expressed anxiety that a lack of fuel would cripple their only source of income.
Savar Upazila Nirbahi Officer (UNO) Md Saiful Islam urged citizens not to panic.
"We are monitoring the situation closely to prevent artificial crises. The reality is not yet as dire as the panic suggests. The government has simply asked for austerity in our energy use," he said.
The crisis is also followed by a high-level government meeting chaired by Energy Minister Iqbal Hasan Mahmud Tuku, where a 10% cut in fuel allocations to filling stations was ordered.
The government has also reduced gas supply for power generation by 50mmcfd and shut down almost all fertiliser factories.
Reserves dwindling fast
According to a yesterday's (5 March) report, Diesel stocks have dropped to just nine days of supply, octane reserves to 15 days, and furnace oil reserves to 60 days, down from 93 days only weeks earlier.
Global factors are compounding the local panic.
Following the closure of the Strait of Hormuz and attacks on Qatari energy facilities, QatarEnergy has invoked force majeure, halting long-term LNG deliveries to Bangladesh.
This has forced state-run Petrobangla to purchase spot market LNG at nearly $28 per MMBtu, two and a half times higher than prices earlier this week.
In another move to encourage conservation, Prime Minister Tarique Rahman has already directed his office to cut electricity use by half and maintain air conditioners at 25°C.
Meanwhile, the Bangladesh Petroleum Corporation (BPC) Director AKM Azadur Rahman said some countries with which Bangladesh has government-to-government (G2G) agreements have surplus cargoes, and efforts are being made to secure them.
The state authorities are negotiating emergency imports from Singapore, Malaysia, and other alternative suppliers to replenish the country's fast-depleting reserves.
