Govt moves to raise strategic fuel storage capacity to 90 days
Strategic fuel storage capacity will be increased from the current 60 days to 71 days by December this year and to 90 days by 2027.
Highlights
- Government targets 90-day strategic fuel reserves by 2027
- Storage capacity increases to 71 days by December
- Initiative strengthens energy security against global market disruptions
The government has undertaken a comprehensive initiative to raise the country's strategic fuel storage capacity to 90 days for further strengthening energy security and safeguarding the economy against global geopolitical and market uncertainties.
Keep updated, follow The Business Standard's Google news channel
"The government has undertaken the move to ensure uninterrupted industrial production and sustain economic growth even during disruptions in the international energy market," Bangladesh Petroleum Corporation (BPC) Chairman Md Rezanur Rahman told BSS today (16 July).
He said under the plan, strategic fuel storage capacity will be increased from the current 60 days to 71 days by December this year and to 90 days by 2027.
"To achieve the target, the Energy Division and the BPC have been implementing a series of measures, including expanding their own storage infrastructure, constructing new depots, renovating idle tanks and leasing surplus tanks owned by government and private organisations," he said.
According to BPC, the present fuel storage capacity is for more than 60 days, and the government has been working to increase it to 71 days by December. The target is to ensure 90 days' storage capacity by 2027.
According to the National Energy Policy-1996, it required the country to maintain strategic petroleum reserves for 60 days.
Currently, Bangladesh has adequate fuel stocks, and there is no shortage of petroleum products in the country.
Energy Division Secretary Mohammad Saiful Islam said that the energy policy stipulates a strategic fuel reserve of 60 days, adding, "Considering the present realities, we plan to raise it gradually to 90 days, and the work is underway. There is no fuel shortage at this moment."
Annual demand and existing capacity
According to official projections, Bangladesh's total demand for petroleum products in the 2026 calendar year has been estimated at 84,26,400 tonnes. Diesel demand is estimated at 44.73 lakh tonnes, furnace oil 735,000 tonnes, jet fuel 663,000 tonnes, octane 439,900 tonnes and petrol 488,500 tonnes annually.
Energy Division said six companies operating under BPC, including Padma Oil, Meghna Petroleum and Jamuna Oil, currently have a combined storage capacity of 15,44,066 tonnes. Of which renovation and maintenance works are underway with a capacity of 67,632 tonnes.
BPC's own storage capacity is 57 days for diesel, 46 days for octane, 29 days for petrol and 78 days for furnace oil. The corporation now aims to increase the country's overall strategic fuel storage capacity to 90 days.
Government tanks to be utilised
The government agencies, including power plants, Bangladesh Railway and the Bangladesh Road Transport Corporation (BRTC), have a storage capacity of 142,298 tonnes of diesel and 178,400 tonnes of furnace oil for operational activities.
Besides, the government planned to lease surplus storage capacity from these institutions while also refurbishing 82,200 tonnes of storage facilities at inactive power plants.
