Bangladesh has taken an initiative to increase its fuel oil storage capacity to tackle volatility in the global energy market and potential supply disruptions. The government aims to raise the country’s existing storage capacity of around 60 days to 71 days by December 2026 and 90 days by 2027 to ensure energy security and keep industrial production uninterrupted.

Bangladesh Petroleum Corporation (BPC) Chairman Dr Rafiqul Islam disclosed the plan, saying the government has decided to gradually increase strategic fuel reserves in view of the current global situation.

He said the initiative aims to maintain stability in the domestic fuel market even if supplies are disrupted due to unforeseen circumstances.

According to the BPC chairman, several measures are underway to expand storage capacity, including developing existing storage infrastructure, constructing new depots, renovating unused tanks and renting additional storage facilities from public and private organisations.

The Energy and Mineral Resources Division and the BPC are jointly implementing these initiatives.

He said expanding or renovating storage tanks by both public and private organisations would further strengthen the country’s fuel storage capacity and make it easier to deal with temporary supply disruptions.

BPC sources said the government plans to rent unused storage facilities from different organisations. It has also taken initiatives to renovate and reuse storage infrastructure at closed power plants with a combined capacity of 82,200 tonnes.

The corporation is also considering renting storage facilities with a capacity of 30,000 tonnes from private company Omera.

Meanwhile, new depots and storage tanks are being constructed on unused land owned by Padma Oil, Meghna Petroleum and Jamuna Oil.

Under the plan, Padma Oil is constructing two tanks with a combined capacity of 9,500 tonnes, while Meghna Petroleum is building three tanks with a total capacity of 10,000 tonnes. Jamuna Oil is developing new storage infrastructure with a capacity of 58,500 tonnes.

The country currently has the capacity to store more than 60 days’ worth of fuel oil, and work is underway to increase it to 71 days by December.

According to projections by the Energy Division, Bangladesh’s total demand for petroleum products is expected to reach 8.426 million tonnes in 2026. Of this, diesel demand is estimated at 4.473 million tonnes, with an average monthly requirement of 372,750 tonnes.

The projected demand for furnace oil is 735,000 tonnes, jet fuel 663,000 tonnes, octane 439,900 tonnes and petrol 488,500 tonnes.

The six companies under the BPC, including Padma Oil, Meghna Petroleum and Jamuna Oil, have a combined fuel storage capacity of 1.544 million tonnes. Renovation and maintenance work is currently underway on infrastructure with a capacity of 67,632 tonnes.

Under its own management, the BPC can currently store diesel for 57 days, octane for 46 days, petrol for 29 days and furnace oil for 78 days. However, the corporation aims to increase the country’s overall strategic fuel storage capacity to 90 days.

The National Energy Policy 1996 stipulates that Bangladesh should maintain fuel oil reserves sufficient for 60 days.

In addition, government entities, including power plants, Bangladesh Railway and Bangladesh Road Transport Corporation (BRTC), have storage capacities of 142,298 tonnes of diesel and 178,400 tonnes of furnace oil for their own consumption.

Energy experts believe renovating and reactivating unused storage tanks would be more cost-effective and practical than acquiring new land and undertaking large infrastructure projects.

They have suggested converting underutilised kerosene tanks for diesel storage and making use of surplus storage facilities in the power sector and Bangladesh Railway. They also described the government’s initiative as timely.

As part of the ongoing efforts, three jet fuel tanks at the Padma Oil depot in Sylhet, with a combined capacity of 1,037 tonnes, are being converted for diesel storage.

Meanwhile, construction of five new tanks with a total capacity of 2,165 tonnes is underway at the Bhairab Bazar depot.