Dhaka officials have given a huge boost to efforts to calm regional markets and panic buying in South Asia by confirming that the country's petroleum reserves are still well above critical operational thresholds.
The Ministry of Power, Energy and Mineral Resources has firmly dismissed concerns about possible fuel rationing in Bangladesh. According to senior ministry figures, the nation currently holds approximately 344,000 tonnes of diesel, providing a robust cushion against short-term supply chain disruptions.
Speaking at a news briefing in Dhaka on Wednesday, Joint Secretary Monir Hossain Chowdhury stated that national fuel distribution remains stable. Monir Hossain Chowdhury shared details of the current stock levels, explaining that the nation has enough fuel stored to support normal daily life across the country.
Monir Hossain Chowdhury provided a breakdown of how many days each type of fuel will last based on current usage:
· Diesel: 31 days (344,000 tonnes in stock)
· Octane: 36 days
· Petrol: 20 days
· Furnace Oil: 25 days
· Jet Fuel: 20 days
Monir Hossain Chowdhury highlighted that the current diesel supply is higher than usual for this time of year. This ensures that factories, transport networks, and homes will have an uninterrupted supply throughout July and August.
The official statement comes at a time when speculative reports regarding broader energy shortfalls have circulated online, threatening to provoke artificial market panics. Monir Hossain Chowdhury stressed the need for accurate public communication, noting that unfounded rumours risk unnecessarily destabilising downstream retail sectors.
A structural shift towards long-term reserves
Behind the immediate stock figures lies a broader geopolitical and economic strategic recalibration. Bangladesh is actively seeking to expand its national security buffer, moving from traditional reactive stock management toward a formal strategic petroleum reserve framework.
Dhaka’s short-term target is to elevate national fuel buffers to a 60-day threshold, with a long-term goal of establishing a permanent 90-day reserve system in line with international standard guidelines maintained by major energy-importing nations.
To support this ramp-up, significant import volumes are already in route:
· Late July Delivery: 140,000 tonnes of middle distillates are scheduled to berth by the end of the month.
· August Delivery: An additional 240,000 tonnes are scheduled to arrive via maritime shipments in August.
Market analysis: liquid fuels vs. the persistent gas deficit
While liquid refined fuels present a picture of short-term stability, Bangladesh’s energy landscape remains bifurcated. The relative health of refined oil stocks sharply contrasts with the persistent, structural deficit affecting the domestic natural gas sector.
Monir Hossain Chowdhury acknowledged that the nation continues to struggle with a significant supply gap in natural gas. Daily domestic demand sits at roughly 3,800 million cubic feet per day (mmcfd), whereas total combined output—sourced from indigenous gas fields and imported Liquefied Natural Gas (LNG)—hovers between 2,700 and 2,800 mmcfd.
Bangladesh Natural Gas Balance Volume (MMCFD)
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Bangladesh Natural Gas Balance
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Volume (MMCFD)
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National Demand
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3,800
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Total Supply (Domestic + LNG)
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2,700 – 2,800
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Daily Supply Deficit
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1,000 – 1,100
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This shortfall of approximately 1,000 mmcfd places a lingering strain on industrial production, fertiliser plants, and gas-fired grid power facilities, often forcing temporary reliance on heavier, costlier furnace oil generation.
Policy direction and infrastructure outlook
To mitigate this systemic imbalance, policymakers in Dhaka are pursuing a two-pronged strategy: accelerating domestic exploration and expanding off-shore import infrastructure.
The government has stepped up onshore and offshore drilling campaigns to discover fresh commercial gas deposits. Simultaneously, efforts are underway to expand Floating Storage and Regasification Unit (FSRU) throughput capacity along the coastal belts of Moheshkhali and Cox’s Bazar. Expanding regasification capacity remains crucial if the country is to absorb greater volumes of spot-market and long-term contracted LNG cargoes without bottlenecking local pipelines.
For global market observers and commodity traders, Bangladesh’s clear posture on refined fuel reserves provides welcome clarity. However, the medium-term economic stability of the nation’s power sector will depend on how quickly authorities can close the gap between growing industrial gas demand and lagging supply infrastructure.
How the government is trying to fix the gas shortage
To address the gas shortfall, the government is taking two main actions:
· Searching for More Local Gas: Increasing drilling activities on land and offshore to find new domestic gas fields.
· Upgrading Infrastructure: Expanding offshore gas receiving units (known as Floating Storage and Regasification Units, or FSRUs) near Moheshkhali and Cox’s Bazar so the country can process and import more LNG from international markets.
Overall, while the gas sector still needs work, the government’s clear update on diesel and petroleum stocks reassures citizens and businesses for the coming months.
