By Nazibur Rahman Sohel and Obaidur Rahman

DHAKA, July 16, 2026 (BSS) - The government has undertaken a comprehensive initiative to raise the country's strategic fuel storage capacity to 90 days for further strengthening energy security and safeguarding the economy against global geopolitical and market uncertainties.

"The government has undertaken the move to ensure uninterrupted industrial production and sustain economic growth even during disruptions in the international energy market," Bangladesh Petroleum Corporation (BPC) Chairman Md Rezanur Rahman told BSS here today.

He said under the plan, strategic fuel storage capacity will be increased from the current 60 days to 71 days by December this year and to 90 days by 2027.

"To achieve the target, the Energy Division and the BPC have been implementing a series of measures, including expanding their own storage infrastructure, constructing new depots, renovating idle tanks and leasing surplus tanks owned by government and private organisations," he said.

According to BPC, present fuel storage capacity is for more than 60 days and the government has been working to increase it to 71 days by December. Target is to ensure 90 days' storage capacity by 2027.

According to the National Energy Policy-1996, it required the country to maintain strategic petroleum reserves for 60 days.

Currently, Bangladesh has adequate fuel stocks and there is no shortage of petroleum products in the country.

Energy Division Secretary Mohammad Saiful Islam said that the energy policy stipulates a strategic fuel reserve to 60 days, adding, "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."

Annual demand and existing capacity

According to official projections, Bangladesh's total demand for petroleum products in the 2026 calendar year has been estimated at 84,26,400 tonnes. Diesel demand is estimated at 44.73 lakh tonnes, furnace oil 735,000 tonnes, jet fuel 663,000 tonnes, octane 439,900 tonnes and petrol 488,500 tonnes annually.

Energy Division said six companies operating under BPC, including Padma Oil, Meghna Petroleum and Jamuna Oil, currently have a combined storage capacity of 15,44,066 tonnes. Of which renovation and maintenance works are underway with a capacity of 67,632 tonnes.

BPC's own storage capacity is 57 days for diesel, 46 days for octane, 29 days for petrol and 78 days for furnace oil. The corporation now aims to increase the country's overall strategic fuel storage capacity to 90 days.

Government tanks to be utilized

The government agencies, including power plants, Bangladesh Railway and the Bangladesh Road Transport Corporation (BRTC), have storage capacity of 142,298 tonnes of diesel and 178,400 tonnes of furnace oil for operational activities.

Besides, the government planned to lease surplus storage capacity from these institutions while also refurbishing 82,200 tonnes of storage facilities at inactive power plants.

Energy Division joint secretary Monir Hossain Chowdhury told BSS that BPC's current strategic diesel reserve stands at 57 days.

"If the power sector and Bangladesh Railway purchase and store fuel for 3 month's demand 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, however, said that these organisations are interested in purchasing fuel in bulk and they prefer deferred payment, which poses a challenge for BPC as it imports petroleum through cash payments in the international market.

The Energy Division is considering arrangements of finance to facilitate bulk procurement, Chowdhury said.

Projects to expand storage

BPC said commissioning of the Parbatipur depot in Dinajpur under the India-Bangladesh Friendship Pipeline project was completed in June, increasing storage capacity in the northern region by 28,437 tonnes and raising BPC's total storage capacity to 15,72,503 tonnes.

The corporation also plans to construct four more depots at Parbatipur by 2027.

Similarly, six additional depots will be built with BPC's own financing and management on unused land at its existing automated depot in Cumilla.

Meanwhile, two new tanks with a capacity of 11,000 tonnes each were constructed at Meghna Petroleum's Godnail depot in Narayanganj while two more tanks with a combined capacity of 13,000 tonnes were built at Aliganj depot in Fatullah. Construction of a 1,450-tonne HOBC tank at Godnail depot is also in progress.

BPC said projects are underway to build additional depots and storage tanks on vacant land at Padma Oil, Meghna Petroleum and Jamuna Oil, including two tanks having storage capacity of 9,500-tonne at Padma Oil, three tanks with 10,000-tonne capacity at Meghna Petroleum and new storage with a capacity of 58,500 tonnes at Jamuna Oil.

In addition, three jet fuel tanks with a combined capacity of 1,037 tonnes at Padma Oil depot in Sylhet are being converted for diesel storage. Construction of five tanks with a total capacity of 2,165 tonnes is underway at Bhairab Bazar depot.

BPC is also considering leasing 30,000 tonnes of storage capacity from the 40,000-tonne tank facilities owned by private company Omera.

BPC Chairman Rezanur Rahman said storage capacity increased for commissioning of Parbatipur depot in June and storage capacity reached to more than 28,000 tonnes.

Energy experts said reactivating idle storage tanks, converting underutilised kerosene tanks into diesel storage and utilising surplus tanks owned by power sector and Bangladesh Railway would be more cost-effective and practical than acquiring new land and implementing large-scale long-term infrastructure projects, describing the government's time-befitting initiative.