Octane imports exceed storage capacity, but queues persist at filling stations

Bangladesh now has more octane in stock than its storage system can handle, but supply bottlenecks and panic buying are keeping queues long at filling stations.

In the first week of April, a vessel carrying 26,000 tonnes of octane arrived. Another shipment of 27,000 tonnes reached the outer anchorage of Chattogram Port last night. 

Once unloaded, total stock is expected to rise to about 55,500 tonnes, overshooting the national storage limit of 53,000 tonnes. The volume is enough to cover more than 45 days of demand.

The supply situation is further supported by local refining. Around 700 tonnes of octane are being produced daily.

Calling the situation unprecedented, State Minister for Power, Energy and Mineral Resources Anindya Islam Amit said the country has never held such high fuel reserves at one time. He made the remarks at a press briefing in Chattogram yesterday (17 April).

Data from Bangladesh Petroleum Corporation shows storage capacity is spread across 16 depots. Of that, 20,000 tonnes are held at Eastern Refinery Limited, while BPC’s main facilities in Chattogram account for another 22,000 tonnes.

Still, supply at the pump has not caught up with the buildup in stock. Long lines continue in Dhaka and Chattogram, particularly among motorcyclists and private car owners who rely on octane. Many report waiting from early morning, only to find daily allocations exhausted.

Industry insiders say the issue is being driven less by shortage and more by behaviour. Mohammad Moin Uddin, a leader of the petroleum dealers’ association, pointed to panic buying.

“People are queuing up even when they don’t urgently need fuel,” he said, noting that demand remains elevated despite increased supply.

Officials say short-term planning remains intact. Fuel demand for April and May has already been secured, with preparations underway for June.

“We are fully prepared to meet demand for the next two months,” the state minister said.

The current situation marks a sharp reversal from March. At the time, global uncertainty, particularly linked to tensions involving the US, Israel and Iran, led to concerns over supply disruptions. The government responded by capping supply in line with projected demand.

Daily supply averaged 1,217 tonnes in March, slightly above 1,193 tonnes a year earlier. But amid fears of shipment delays, BPC informally trimmed daily distribution by around 100 tonnes, officials said.

For April, BPC had planned average daily octane sales of 1,185 tonnes.

Alongside octane, petrol stocks stood at about 19,500 tonnes as of yesterday, enough to cover at least two weeks of demand. Output from five local fractionation plants processing condensate is also helping stabilise overall fuel supply.