The government has claimed that it has sufficient stocks of octane and diesel to meet the local demand.
However, supply remains sluggish, and people across the country are still enduring long and often unbearable waits at filling stations.
Fuel stations have imposed purchase limits based on vehicle capacity, further fuelling panic buying.
The situation has also encouraged the emergence of a black-market syndicate involved in hoarding and selling fuel at inflated prices.
In response, the local administration, with support from law enforcement agencies, has conducted several drives based on intelligence inputs and recovered large quantities of fuel from different parts of the country.
Even after hours in queues, many customers are unable to obtain fuel, deepening public frustration.
Against this backdrop, the Bangladesh Petroleum Corporation (BPC) has abruptly suspended procurement from local producers of petrol and octane.
The companies were instructed through a letter issued 10 days ago to halt supply, leaving them in uncertainty.
Officials cite limited storage capacity in state-owned depots and inefficiencies in refinery operations as key reasons.
They say depots are already overflowing, leaving no space to accommodate additional octane or petrol.
Experts argue that the issue reflects deeper planning gaps.
The country's storage capacity covers less than a month's requirement, and recent large fuel imports have further strained the system.
Instead of suspending local procurement, they say the authorities could have better coordinated storage and distribution, including using depots more efficiently.
However, such arrangements require proper testing and handling procedures for locally sourced fuel.
They also propose that, on a pilot basis, easing purchase limits at fuel stations could help reduce congestion and long queues, especially since there is no actual physical shortage in supply.
Energy experts say the mismatch between supply claims and ground reality is eroding public trust.
People are waiting for up to 12 hours in queues, while official statements continue to indicate adequate stock levels, raising questions about distribution efficiency.
They further point to weaknesses in energy sector planning and supply chain management rather than an actual shortage-driven crisis.
The state-owned Eastern Refinery Limited, they note, cannot produce octane that meets BSTI standards and produces only petrol.
Locally produced octane is blended with imported supply due to high sulphur content - around 2,500 ppm compared to the national standard of 350 ppm.
At the same time, several private and semi-private refineries, including Sylhet Gas Fields, TK Group Refinery, Petrex Group Refinery, Aqua Refinery Ltd, and Petromax Refinery Ltd, have the capacity to contribute significantly to domestic octane production, though operations depend heavily on imported condensate.
Monthly octane demand is around 75,000 tonnes, of which TK Group alone can produce about 35,000 tonnes.
Up to 75 per cent of petrol demand can also be met domestically.
Despite this, the suspension of local procurement has raised concerns across the sector.
Experts question why consumers continue to face long queues despite strong domestic production capacity.
They argue that this points to weaknesses in distribution and supply chain coordination, which could have been addressed with more forward-looking planning.
Concerns have also been raised over whether vested interest groups are influencing decisions that contribute to perceived market instability.
Sources at the Prime Minister's Office say Tarique Rahman has been holding repeated discussions with relevant officials over public suffering caused by fuel disruptions.
He has directed the authorities to take steps to ease hardship and investigate possible mismanagement in fuel distribution.
According to government data, octane storage capacity stands at 53,000 tonnes, while current stock is around 55,000 tonnes.
However, the arrival of a vessel carrying 37,000 tonnes on April 10 has further complicated storage management for the Bangladesh Petroleum Corporation.
Ministry sources say over 60,000 tonnes of octane and petrol arrived this month, with another 120,000 tonnes expected shortly.
This has left virtually no available storage capacity.
As a result, distribution companies were earlier instructed to use kerosene depots for octane storage.
However, implementation has been delayed due to infrastructure and operational constraints.
BPC officials say distribution companies have not been able to prepare kerosene tanks in time, delaying proper handling of incoming shipments.
They add that inefficiencies in coordination are ultimately affecting both consumers and private suppliers.
Meanwhile, global oil prices have nearly doubled.
BPC officials say this has made procurement increasingly difficult, as buying at higher international prices while selling at regulated domestic rates is causing significant losses, estimated at over Tk 10 billion per day.
At present, the three state-run distribution companies - Padma, Meghna, and Jamuna - supply an average of 12,777 tonnes of diesel, 1,496 tonnes of petrol, and 1,193 tonnes of octane daily.
Following the outbreak of conflicts in the Middle East on February 28, fuel distribution remained unrestricted until March 7, after which rationing was introduced.
Subsequent directives reduced supply allocations by 10 per cent, compared to the demand levels of the same period in 2025.
Another directive issued before Eid temporarily suspended rationing but maintained overall supply limits.
Officials say this policy inconsistency has contributed to panic buying and longer queues, further undermining public confidence.
Diesel supply, however, has started to stabilise. The country currently holds over 100,000 tonnes of diesel against a monthly demand of around 400,000 tonnes.
Imports were disrupted last month due to global conflicts, with several suppliers delaying shipments.
In March, 253,000 tonnes were imported, while more than 350,000 tonnes were supplied from combined sources.
Following a temporary ceasefire, 472,000 tonnes are expected this month, of which 200,000 tonnes have already arrived.
The remaining shipments are scheduled within the next 11 days.
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