Dhaka:The government of Bangladesh is working to expand its fuel storage capacity to meet 90 days of demand in an effort to ensure a stable gasoline supply for uninterrupted industrial operations and enhance energy security amidst global market volatility.
According to Bangladesh Sangbad Sangstha, Bangladesh Petroleum Corporation (BPC) Chairman Dr Md Rafiqul Islam stated that the strategic fuel storage capacity is set to increase from the current 60 days to 71 days by December this year, and reach 90 days by 2027. This initiative is part of the government's plan to stabilize the domestic energy market during potential disruptions.
Currently, the BPC and the energy division are implementing several measures to expand storage infrastructure. These measures include constructing new depots, renovating idle tanks, and leasing surplus tanks from both government and private organizations. The government plans to lease additional storage from various firms and renovate storage infrastructure at dormant power stations.
Projects are already underway to build additional storage tanks at Padma Oil, Meghna Petroleum, and Jamuna Oil. For instance, Padma Oil will see the construction of two tanks with a capacity of 9,500 tonnes, Meghna Petroleum will have three tanks with a 10,000-tonne capacity, and Jamuna Oil will add new storage facilities with a capacity of 58,500 tonnes.
Bangladesh's total demand for petroleum products in 2026 is estimated at 8,426,400 tonnes, with specific demands for diesel, furnace oil, jet fuel, octane, and petrol outlined. The BPC's current storage capacity covers 57 days for diesel, 46 days for octane, 29 days for petrol, and 78 days for furnace oil. The goal is to increase the overall strategic fuel storage capacity to 90 days.
The National Energy Policy of 1996 mandates the maintenance of a 60-day strategic petroleum reserve. Energy experts suggest that reactivating idle tanks and utilizing surplus tanks owned by the power sector and Bangladesh Railway would be more practical than embarking on new large-scale infrastructure projects.
Furthermore, conversion of existing tanks is underway, such as transforming jet fuel tanks at the Padma Oil depot in Sylhet for diesel storage and constructing new tanks at the Bhairab Bazar depot.