Dhaka: The government has launched a comprehensive initiative to increase Bangladesh’s strategic fuel storage capacity to 90 days by 2027, aiming to strengthen national energy security and protect the economy from global geopolitical tensions and volatility in international energy markets.
Bangladesh Petroleum Corporation (BPC) Chairman Md Rezanur Rahman said the move is intended to ensure uninterrupted industrial production and sustain economic growth even during disruptions in global fuel supply.
“The government has undertaken this initiative to ensure uninterrupted industrial production and sustain economic growth even during disruptions in the international energy market,” he told BSS.
Under the plan, the country’s strategic fuel storage capacity will be increased from the current 60 days to 71 days by December this year, before reaching the 90-day target in 2027.
To achieve this goal, the Energy Division and BPC are implementing a series of measures, including expanding existing storage infrastructure, constructing new depots, renovating inactive storage tanks and leasing surplus storage facilities from both government and private organizations.
According to BPC, Bangladesh currently has fuel reserves sufficient for more than 60 days, while the National Energy Policy-1996 originally required the country to maintain a 60-day strategic petroleum reserve.
Energy Division Secretary Mohammad Saiful Islam said the government is increasing the reserve in response to changing global realities.
“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,” he said.
Annual Fuel Demand
Official projections estimate Bangladesh’s total petroleum demand for 2026 at 8.43 million tonnes, including:
- Diesel: 4.47 million tonnes
- Furnace oil: 735,000 tonnes
- Jet fuel: 663,000 tonnes
- Octane: 439,900 tonnes
- Petrol: 488,500 tonnes
Currently, six BPC subsidiaries—including Padma Oil, Meghna Petroleum and Jamuna Oil—have a combined storage capacity of 1.54 million tonnes, while maintenance and renovation work is underway on facilities with an additional capacity of 67,632 tonnes.
BPC’s current reserve capacity covers approximately:
- 57 days for diesel
- 46 days for octane
- 29 days for petrol
- 78 days for furnace oil
Utilizing Existing Government Infrastructure
The government also plans to utilize surplus storage facilities owned by other state agencies.
Power plants, Bangladesh Railway and Bangladesh Road Transport Corporation (BRTC) together possess storage capacity for 142,298 tonnes of diesel and 178,400 tonnes of furnace oil.
In addition, authorities plan to refurbish 82,200 tonnes of storage capacity at inactive power plants.
Energy Division Joint Secretary Monir Hossain Chowdhury said BPC’s current strategic diesel reserve stands at 57 days.
“If the power sector and Bangladesh Railway purchase and store fuel for three months under their own arrangements, the country’s overall fuel reserve could increase by another 12 to 13 days without launching any new project,” he said.
He noted, however, that those organizations prefer deferred payment arrangements, while BPC purchases petroleum in the international market through immediate cash payments. The Energy Division is considering financing mechanisms to address this challenge.
Expanding Fuel Storage Infrastructure
BPC recently commissioned the Parbatipur Fuel Depot in Dinajpur under the India-Bangladesh Friendship Pipeline project, increasing northern Bangladesh’s storage capacity by 28,437 tonnes.
The corporation plans to construct four additional depots at Parbatipur by 2027.
It also intends to build six new depots at its automated depot in Cumilla using its own financing.
Other ongoing expansion projects include:
- Two 11,000-tonne storage tanks at Meghna Petroleum’s Godnail depot.
- Two additional tanks with a combined 13,000-tonne capacity at Aliganj depot.
- Construction of a 1,450-tonne HOBC tank at Godnail.
- Two 9,500-tonne tanks at Padma Oil.
- Three 10,000-tonne tanks at Meghna Petroleum.
- New storage facilities with 58,500-tonne capacity at Jamuna Oil.
- Conversion of three jet fuel tanks in Sylhet into diesel storage.
- Construction of five new tanks with a combined 2,165-tonne capacity at Bhairab Bazar depot.
BPC is also considering leasing 30,000 tonnes of storage capacity from private operator Omera.
BPC Chairman Rezanur Rahman said the commissioning of the Parbatipur depot has already strengthened the country’s fuel storage capability, while additional expansion projects are progressing steadily.
Energy experts have welcomed the initiative, saying that reactivating idle storage tanks, converting underutilized facilities and utilizing surplus storage owned by government agencies offer a cost-effective and practical approach to rapidly strengthening Bangladesh’s strategic fuel reserves.
