Govt targets hoarders as fuel reserves ‘stable’

The government has adopted a hardline stance against fuel oil hoarding in a bid to quell an “artificial crisis”, engineered under the pretext of ongoing Middle East tensions.

While several ministers and senior officials maintain there is no physical shortage of fuel in the country, law enforcement agencies are uncovering illegal stockpiles across the country on an almost daily basis. 

Authorities allege that a segment of unscrupulous traders, coupled with panic-buying by the public, is driving the perceived scarcity.

Experts suggest that the current strain on distribution is being fuelled more by market manipulation and hoarding than by a genuine supply deficit, even as the government tightens its monitoring and weighs potential price adjustments under various subsidy models.

Officials from the Energy and Mineral Resources Division (EMRD) confirmed they are currently reviewing proposals from state-run distributors to adjust prices for the upcoming cycle. 

They are simultaneously calculating the fiscal implications of maintaining current subsidies versus implementing a moderate price hike.

“We have received the proposal regarding fuel price adjustment and are examining it thoroughly,” EMRD Joint Secretary Monir Hossain Chowdhury told a press briefing on 30 March. 

He noted that the government is evaluating several scenarios, including the impact of a Tk2 to Tk5 per litre increase on the national exchequer. A final decision is expected within the next 48 hours.

The government is currently caught between the fiscal burden of heavy subsidies and the potential for public outcry should prices rise. 

Internal estimates indicate that for the March–June period, the diesel subsidy requirement alone stands at Tk15,409 crore, with octane adding a further Tk636 crore.

When factoring in LNG support through Petrobangla, the total estimated support reaches approximately Tk16,045 crore.

Despite the volatility in global energy markets, Bangladesh has so far held domestic prices steady – a move officials credit with shielding the public from a more severe inflationary shock.

Addressing Parliament on Monday, Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood reiterated that there is no energy shortage. “Fuel hoarding and excessive purchasing are the real problems,” he said. 

The minister pointed out that while diesel is sold at Tk100 per litre, the actual cost is nearly Tk198, with the state absorbing the difference.

 

He also confirmed that 50,000 tonnes of octane will be imported in April, alongside 30,000 tonnes from domestic sources, ensuring a two-month buffer.

Official data suggests the structural supply remains sound. National storage currently holds around 2.8 lakh tonnes of diesel, with a further 56,000 tonnes due to arrive in April. 

Supply chains from China, Indonesia, and Singapore are expected to contribute 1.5 lakh tonnes, while 6 lakh tonnes are slated for procurement from Russia over the next two months under temporary sanction relaxations.

Furthermore, Bangladesh is diversifying its imports beyond the Middle East, engaging with suppliers in Nigeria, Azerbaijan, Australia, and the US. 

Diplomatic efforts also continue with Iran to ensure the safe passage of shipments through the Strait of Hormuz.

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Between 3 and 29 March, authorities conducted 3,168 raids across 64 districts, recovering 2,08,650 litres of illegally stored fuel. This included nearly 1.4 lakh litres of diesel. 

So far, 1,053 cases have been filed, 16 individuals have been jailed, and Tk75.16 lakh in fines has been collected.

On Monday, the Chattogram district administration seized 25,000 litres of diesel in Sitakunda, while police in Gazipur recovered 28,500 litres of diesel in separate drives. 

To bolster these efforts, the government has formed vigilance teams and announced a reward of up to Tk1 lakh for credible information on hoarding or smuggling.

Despite official reassurances, the situation on the ground remains tense. 

In Dhaka, motorists have faced long queues and informal rationing, with many pumps limiting sales to Tk500-600 per vehicle. 

Stations in areas such as Asad Gate, Tejgaon, and Paribag have seen intermittent supply, leading to significant congestion when deliveries arrive.

Energy expert Prof Dr Ijaz Hossain told the Daily Sun that stricter monitoring at the depot level is essential. 

“Fuel is being diverted from depots to unofficial channels and exploited by black-market networks,” he observed, noting that this creates undue pressure on both consumers and the industrial sector.

Echoing these concerns in Parliament, Kurigram-1 MP Anwarul Islam said, “Although it is claimed there is no crisis, the reality on the ground tells a different story.”

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