Fuel Stations See Pre-Hike Rush

Motorists rushed to filling stations across Bangladesh on Sunday night to buy fuel at the old prices before a Tk20-per-litre increase took effect. Long queues of motorcycles, private cars and other vehicles were reported at filling stations in Kushtia, Sirajganj, Rangpur, Khulna, Sylhet, Cox’s Bazar and Magura. Many Netigen from that queue were seen expressing anger by standing in a long queue on Facebook, TikTok Live and not getting oil.

The Energy and Mineral Resources Division raised the prices of all four major petroleum products by Tk20 per litre in a notification issued on Sunday night. The revised rates took effect from September 21. Diesel rose from Tk115 to Tk135 per litre, kerosene from Tk135 to Tk155, octane from Tk145 to Tk165 and petrol from Tk140 to Tk160.

Many motorists visited filling stations before midnight hoping to purchase the required amount of fuel at the previous lower prices. Local reports said some stations limited sales before the new rates came into effect and began selling at the revised prices afterwards.

At Messrs Park Filling Station in the Kazi­pur intersection area of Sirajganj, more than 100 motorcycles were reportedly lined up for fuel. Some customers left without buying fuel after waiting in the long queue.

Similar crowds were reported at several filling stations in Kushtia. Some motorists expressed concern that higher fuel prices could increase transport costs and eventually put additional pressure on the prices of everyday goods.

In Magura, motorists and other customers were seen waiting in long queues at several stations. Some attempted to secure the amount of fuel they needed before the higher rates came into effect.

In Chakaria, Cox’s Bazar, motorcycles and other vehicles also gathered at filling stations during the night. One motorcycle rider said a Tk20 increase per litre would raise daily commuting expenses, prompting him to refuel before the price hike.

Another rider said household and transport expenses were already high relative to income and that the fuel-price increase would add further pressure.

A filling-station employee said customer traffic increased noticeably after news of the price hike spread, with more motorcycles and other vehicles arriving than during normal hours.

Why the prices increased

The Energy and Mineral Resources Division said international fuel prices and shipping costs had risen significantly since March amid the ongoing conflict in the Middle East. The government has cited the international market pressure as a key reason for the latest domestic adjustment.

According to information cited by The Financial Express, Bangladesh Petroleum Corporation incurred losses of around Tk22,875 crore from fuel sales between March and August. The government also cited the risk of fuel smuggling to neighbouring countries, where prices were higher, as another factor behind the adjustment.

The government had kept September fuel prices unchanged at the rates of Tk115 for diesel, Tk135 for kerosene, Tk140 for petrol and Tk145 for octane. The latest decision therefore represents another adjustment within the same month.

Wider economic impact

Diesel is widely used in transportation, agriculture, power generation and industry. According to data cited by The Daily Star from Bangladesh Petroleum Corporation, diesel accounts for about 64 percent of total petroleum consumption in Bangladesh, with transportation being its largest area of use. Higher diesel prices could therefore affect passenger and freight transport, irrigation and industrial operating costs.

At the same time, the government has approved in principle the import of an additional 695,000 tonnes of fuel oil for September-December to ensure uninterrupted energy supplies. It has also approved a proposal worth about Tk12,537.49 crore for importing refined petroleum products and an additional LNG cargo.

With the revised rates now in effect, the impact on transport costs, freight movement and other sectors will be closely watched.
//DBTech/BPOJN/SME/BPO//