'Motorists waiting for hours at pumps': Major fuel crisis in Bangladesh

Long queues at fuel stations and stalled cargo movement are signalling a widening fuel crisis in Bangladesh. Motorists across the country are waiting for hours at filling stations, often returning without fuel, according to a report by Dhaka Tribune.

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The shortages are now affecting core sectors of the economy. Rising transport costs, disruptions in agricultural irrigation due to diesel scarcity, and halted fertiliser production linked to gas supply constraints are emerging as immediate concerns.

Analysts attribute the situation to Bangladesh's dependence on imported fuel, rising global prices following the conflict in Iran, and limited investment in domestic gas exploration.

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The transport sector has been among the hardest hit. Diesel shortages have disrupted truck, covered van, and inland waterway operations, pushing up freight costs and passenger fares. Some operators are reportedly charging as much as Tk10,000 per trip on certain routes.

Inland waterways, a critical link in the country's supply chain, are nearing disruption. Lighter vessels - used to unload cargo from larger ships at Chattogram port's outer anchorage - are facing fuel shortages that are slowing operations, according to Bangladesh's Daily Star.

The Bangladesh Water Transport Coordination Cell (BWTCC) has warned that if conditions do not improve, unloading from incoming vessels could come to a halt. In a letter to the finance minister, the organisation said earlier appeals to the power, energy, and mineral resources ministry had not resolved the shortages.

"State-owned fuel suppliers Padma, Meghna and Jamuna have repeatedly failed to provide enough diesel to marine dealers," wrote BWTCC Convener Shafiq Ahmad. "Due to the shortage of fuel, lighter vessels are unable to regularly load cargo from mother vessels or even transport loaded cargo," he said, adding that many vessels are waiting extended periods at the outer anchorage, while others carrying goods are unable to depart.

Around 1,400 lighter vessels operate across Bangladesh's inland waterways, moving cargo from ports to more than 50 destinations, the report said. Of these, about 1,050 are supervised by the BWTCC, with the rest owned by industrial groups.

The disruption is beginning to ripple through rural industries as well. Small and cottage enterprises are facing frequent power outages and rising costs linked to fuel shortages.

"Kourikhara BSCIC Industrial Estate operates under rural electrification. Power outages are frequent," said MA Hashem, an estate manager. "Now even diesel is scarce and expensive, increasing production costs."

Iran has blocked the Strait of Hormuz, through which about 20% of global energy passes. Qatar and the United Arab Emirates account for 72% of Bangladesh’s LNG imports, according to Kpler data. This import has been severely disrupted.

On March 3, CNBC reported that Bangladesh was already running a significant structural gas deficit. According to the Institute for Energy Economics and Financial Analysis, the country was running a shortfall of more than 1,300 million cubic feet per day.

The study by European energy think-tank E3G said that 100 per cent of Bangladesh's crude imports and about 71 per cent of its LNG supplies rely on routes passing through Hormuz.

The report identified Bangladesh as one of the "most vulnerable" import-dependent economies, citing its heavy reliance on seaborne fossil fuels and limited capacity to absorb price shocks.