Govt acts to safeguard fuel supply
The ongoing conflict involving the United States, Israel and Iran could have far-reaching implications for Bangladesh, affecting economic growth, trade, energy security, inflation, and overall macroeconomic stability.
Geopolitical tensions in the Middle East have created uncertainty in global fuel markets, prompting the government to take precautionary measures to manage potential supply disruptions.
Amid concerns over a possible energy crunch, the new administration has been compelled to limit energy supply and procure liquefied natural gas (LNG) and fuel at higher prices to mitigate the looming crisis. Authorities emphasise that these steps are necessary to ensure a stable supply of energy for industries, transport, and power generation.
In response to the evolving situation, the Bangladesh Petroleum Corporation (BPC) has revised its fuel distribution strategy.
The corporation announced a 10 per cent increase in the supply of octane and petrol to divisional cities, while a previously planned 25 per cent reduction in fuel supply has been scaled back to 15 per cent.
BPC Secretary Shohina Sultan stated that the decision aims to ensure that public demand for fuel continues to be met despite global market uncertainties. BPC has also instructed depot superintendents, sales officers, and dealers of its marketing companies to follow the revised allocation chart and ensure smooth fuel distribution across the country.
To strengthen energy security, the government has approved the purchase of three LNG cargoes from the international spot market for delivery in early April. The decision was taken at the eighth meeting of the Cabinet Committee on Government Purchase, chaired virtually by Finance Minister Amir Khasru Mahmud Chowdhury.
The LNG will be procured through the international quotation method. TotalEnergies Gas & Power Ltd of the United Kingdom will supply one cargo at $21.58 per MMBtu, while POSCO International Corporation of South Korea will deliver two cargoes at $20.76 per MMBtu each.
The estimated costs for the three shipments are Tk907.84 crore, Tk873.34 crore, and Tk873.34 crore respectively. Officials say the procurement is essential to ensure uninterrupted gas supply for electricity generation and industrial production.
The government is also exploring additional options to secure fuel supplies. During a meeting at the Power, Energy and Mineral Resources Ministry on 10 March, Bangladesh requested assistance from China to maintain a steady fuel supply under an existing long-term agreement. The meeting was attended by government officials and Chinese Ambassador Yao Wen.
Meanwhile, Bangladesh has begun importing diesel to strengthen reserves. On Wednesday, the country imported 5,000 tonnes of diesel from India, a day after BPC brought in more than 27,000 tonnes of the fuel.
BPC Chairman Muhammad Rezanur Rahman confirmed the imports.
Despite global price volatility and panic buying in the local market, the government has stated there is no current plan to raise fuel or electricity prices. State Minister for Power and Energy Aninda Islam Amit said there is no justification for a price hike at this time.
Earlier, however, the managing directors of Padma Oil Company Limited, Jamuna Oil Company Limited, and Meghna Petroleum Limited proposed raising fuel prices to discourage panic buying and hoarding.
The state minister assured that Bangladesh has sufficient capacity to maintain normal energy and electricity supply at least until May, adding that public concerns over possible shortages are expected to ease as the situation stabilises.
