Panic buying, low supply leave Dhaka filling stations 'running dry' of petrol, octane

The capital is grappling with a severe shortage of petrol and octane, as a number of filling stations across the city have reportedly run dry of petrol and octane amid a surge in panic buying fuelled by global supply chain fears.

The situation worsened today (14 March), as more and more stations suspended operations.

A spot visit to Hajipara Petrol Pump at noon showed staff using megaphones to announce the unavailability of fuel to frustrated drivers.

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Despite the entrance being blocked with ropes and a sign stating "No petrol or octane," many cars and motorcyclists continued to wait at the gates, hoping for a refill.

"We have visited four different pumps since morning, and all of them are empty," said a frustrated commuter, adding, "The search for fuel is actually wasting more of the little I have left in our tanks."

At the Meghna Filling Station opposite Dhaka College, the pump was found closed since morning due to a shortage of fuel. Bamboo poles had been placed across the entrance, preventing vehicles from entering the premises.

Nasir, an operator at the pump, said people had been coming for fuel but were leaving empty-handed. He said fuel might arrive later in the afternoon, after which dispensing could possibly resume.

Shamim, a motorcyclist who had been waiting for nearly an hour for fuel, said, "I took fuel yesterday, but my bike stopped after running out. There is no way to go without fuel, so I am just standing here."

However, a different situation was observed at the Nilkhet Fuel Pump, where drivers of various vehicles, including motorcycles, were seen waiting in line to buy fuel. Fuel was being supplied normally at the pump and drivers did not have to wait long.

Abdur Razzaq, an operator at the pump, said, "We have no fuel crisis here. There is sufficient fuel, so motorcycles and other vehicles are being served regularly."

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Since yesterday afternoon (13 March), motorists have encountered "No stock" signs at numerous stations, leading to a reduction in the number of motorcycles and private cars on Dhaka's streets.

Yesterday, the Gulistan Filling Station remained shut with a notice hanging from the gate.

"We are completely out of octane and petrol. There is no possibility of a fresh supply before Sunday afternoon (15 March)," said Shamser Ali, a salesman at the station.

He noted that while the pump remained open to sell its limited stock of diesel, most customers are being turned away disappointed.

The crisis has been exacerbated by a rush of consumers attempting to stockpile fuel in response to the Iran crisis.

When fuel runs dry

While government officials have previously stated that reserves are adequate, the sudden doubling of demand has overwhelmed local distribution.

Motorists who do find a station with stock report waiting in queues for hours, often only to be met with rationing limits.

Meanwhile, in Rajshahi, the district petrol pump and tank lorry owners' association has threatened to halt operations from Monday (16 March) if the government fails to ensure an adequate supply of fuel to the northern region.

The announcement came following reports of severe supply disruptions across all 42 petrol pumps in the district.

What petrol pump owners say

Owners claimed that while a few filling stations are receiving limited supplies, many others have been forced to suspend operations entirely as they are not receiving fuel according to their requirements.

Nazmul Hoque, president of the Bangladesh Petroleum Dealers, Distributors, Agents and Petrol Pump Owners Association, said petrol pumps are not receiving enough fuel to meet demand.

For example, a pump station that previously received around 20,000 litres of fuel per day is now being allocated only 3,000-4,000 litres, he said.

"But the government is saying there is enough supply, which is sending the wrong message," he told The Business Standard.

Nazmul also claimed that tensions have escalated at several pump stations, with staff at two pumps reportedly stabbed and incidents of vandalism occurring in multiple locations.

Petrol pump owners in Khulna and Rajshahi have already threatened to suspend services, saying they are receiving only one-tenth to one-fifth of their daily fuel demand.

He also expressed surprise that no government authorities have held discussions with them regarding the crisis. 

"I have been trying to speak with the BPC chairman for the past two days to offer some suggestions, but there has been no response," he said.