Bangladesh restricts fuel purchases due to Middle East conflict

Bangladesh imposed daily fuel sales limits in response to a 'panic buying' and a'stockpiling of fuels, which raised concerns over supply as the Middle East war roiled the global energy markets.

These'measures' follow U.S., israeli, and other airstrikes against Iran, as well as retaliatory strikes by Tehran in the Middle East, which has caused oil shipments to be disrupted through the Strait of Hormuz - a vital energy route - and driven energy prices sky-high.

Bangladesh Petroleum Corporation, the state-run distributor and importer, stated that the restrictions aim to restrain excess demand, calm the public, and keep national stocks stable.

Fuel oil is vital for the development of the country, but 95% must be imported, it stated, adding that global instabilities had sometimes delayed shipments.

Rumours of shortages had led consumers and dealers alike to stockpile fuel, the report said.

According to the new limits, motorcycles can buy up 2 litres per day of octane, or petrol; private cars, 10 litres each; SUVs, Jeeps, and Microbuses, 20-25 litres each; pickups, local buses, and trucks, 70-80 litres each; and long distance buses, trucks, and container carriers, 200-220 litres diesel.

BPC reported that demand for fuel at depots is abnormally high. Some dealers are trying to withdraw fuel more than usual, while some consumers are storing fuel in illegal storage. Filling stations are now required to issue cash memos that show the quantity and price of fuel and check previous receipts.

BPC stated that despite the rush,?imports are continuing as normal and supplies are being sent to depots via rail?tankers. The company said that buffer stocks would stabilize soon, and warned consumers against hoarding. It warned that selling fuel above the government-set price is punishable.

Bangladesh is also facing higher costs for importing liquefied gas after Qatar stopped deliveries during the conflict. This prompted authorities to ration gas and close several fertiliser factories.

The country has secured two spot LNG cargoes in March. However, officials have warned that a prolonged disruption may force it to rely more on the volatile spot markets, increasing its import bill. Ruma Paul reported. Mark Potter (Editing)

(source: Reuters)