Bangladesh is experiencing limited disruptions in fuel supply, driven by a combination of global market pressures and domestic demand dynamics, according to a senior government adviser.
Speaking at a press briefing in Dhaka on Tuesday, Dr Zahed Ur Rahman, adviser on information and broadcasting as well as policy and strategy, said the situation had led to some visible strain in distribution, though it does not constitute a severe shortage.
He acknowledged public concern over long queues at fuel stations but said supply levels, while slightly reduced in some segments, have not declined sharply when compared with previous periods. Data presented at the briefing showed that diesel supply has seen only a modest decrease year-on-year, while octane volumes have marginally increased. Petrol supply, however, has recorded a more noticeable drop.
Officials indicated that the reduction in petrol supply amounts to slightly above 10 per cent compared with the same period last year, a change described as manageable in the context of current global conditions.
Authorities pointed to behavioural factors as a key driver of localised shortages. Increased stockpiling by consumers, driven by uncertainty about future supply, has added pressure to distribution systems. Concerns over potential price differences with neighbouring countries have also raised the risk of informal cross-border movement of fuel, particularly in border regions.
Government data suggests that significant volumes of fuel are being held in storage, with notable quantities of diesel, octane and petrol recorded in reserves as of early April. However, officials warned that hoarding and speculative activity could exacerbate supply imbalances.
The developments come against a backdrop of broader fiscal pressure in the energy sector. Bangladesh continues to maintain substantial subsidies to keep fuel prices stable, despite rising international costs. Officials said the subsidy burden remains high, with large outstanding payments across the power and energy sectors, including to independent power producers and fuel suppliers.
Despite these pressures, the government has opted to hold fuel prices steady for now, even as many countries have already adjusted domestic prices in response to global trends. Officials said they intend to monitor the situation closely over the coming weeks before considering any policy changes.
Analysts say the current approach reflects a balancing act between economic stability and fiscal sustainability. Maintaining price controls can shield consumers in the short term, but prolonged subsidies may increase financial strain on the state.
Looking ahead, policymakers may face more difficult decisions if global energy markets remain volatile. The ongoing disruption of key supply routes and elevated import costs could require adjustments in pricing, supply management, or both.
For now, authorities maintain that the situation remains under control while urging the public to avoid panic-driven behaviour that could further disrupt the supply chain.
