Bangladesh rations fuel as conflict spurs panic buying

DHAKA – Bangladesh on Friday imposed daily limits on fuel sales after panic buying and stockpiling raised concerns about supply as the war in the Middle East roiled global energy markets.

The measures follow U.S. and Israeli airstrikes on Iran – and retaliatory strikes by Tehran across the Middle East – which have disrupted oil shipments through the Strait of Hormuz, a key energy route, and sent energy prices soaring.

Bangladesh Petroleum Corporation (BPC), the state-run importer and distributor, said the curbs aim to restrain excessive demand, calm the public, and keep nationwide stocks stable.

“Fuel oil is essential for the country’s development, but about 95% of it must be imported,” it said, adding that global instability had occasionally delayed shipments.
Rumours about shortages had prompted consumers and dealers to hoard fuel, it added.

Under the limits, motorcycles can buy up to 2 litres of octane or petrol a day; private cars 10 litres; SUVs, jeeps and microbuses 20-25 litres; pickups and local buses 70-80 litres; and long-distance buses, trucks and container carriers 200-220 litres of diesel.

BPC said demand at depots was abnormally high, with some dealers trying to withdraw more fuel than usual and some consumers storing fuel illegally. Filling stations must now issue cash memos showing quantity and price and verify previous purchase receipts before refuelling.

Despite the rush, BPC said imports were continuing normally, and supplies were being sent to depots via rail tankers. It said buffer stocks should stabilise soon and urged consumers not to hoard. It also warned that selling fuel above government-set prices is a punishable offence.

Bangladesh also faces higher liquefied natural gas import costs after Qatar suspended deliveries amid the conflict, prompting authorities to ration gas and shut several fertiliser plants.

The country has secured two spot LNG cargoes for March, but officials warned that prolonged disruption could force a heavier reliance on the volatile spot market, adding to its import bill.