Govt plans to raise fuel reserves to 90 days to ensure energy security

The government is working to increase the country's fuel oil storage capacity to meet 90 days of demand to ensure uninterrupted industrial production and strengthen energy security.

Bangladesh Petroleum Corporation (BPC) Chairman Dr Md Rafiqul Islam disclosed the plan on Sunday night.

He said the government aims to increase strategic fuel oil reserves from the current 60 days to 71 days by December this year and 90 days by 2027.

Considering the current situation, the government has adopted a phased plan to raise fuel storage capacity to 90 days, he said.

The initiative is aimed at keeping the domestic fuel market stable in the event of any unforeseen situation.

The BPC chairman said the Energy and Mineral Resources Division and the BPC were implementing several initiatives, including expanding existing storage infrastructure, building new depots, renovating unused tanks and leasing surplus storage tanks from public and private entities.

He said storage capacity would naturally increase if state-owned and private companies could build or renovate fuel storage tanks. This would also help the country cope with potential supply disruptions.

According to the BPC, the government plans to lease surplus storage capacity from different organisations. It also plans to renovate and reopen storage facilities with a combined capacity of 82,200 tonnes at power plants that are currently out of operation.

Besides, the BPC is considering leasing storage facilities with a capacity of 30,000 tonnes from private company Omera.

The corporation also said projects were under way to build additional depots and tanks on available land owned by Padma Oil, Meghna Petroleum and Jamuna Oil.

Under the projects, two tanks with a combined capacity of 9,500 tonnes are being built at Padma Oil, three tanks with a total capacity of 10,000 tonnes at Meghna Petroleum, and new storage facilities with a capacity of 58,500 tonnes at Jamuna Oil.