Fuel prices to come down once West Asia crisis eases: Amit

The government will roll back the recent hike in fuel prices as soon as the crisis in West Asia subsides and international oil prices ease, State Minister for Energy Aninda Islam Amit said on Thursday.

Speaking to reporters after a meeting with local officials in Meherpur, Amit offered an explanation for the recent price increase, noting that the government had absorbed the burden of rising costs for nearly six months before finally taking what he called a “tough decision.”

“The government is hopeful that the West Asia crisis will ease soon. Once it does and global oil prices fall, we’ll move quickly to adjust prices in the domestic market too,” he assured.

Fielding questions on why prices had to rise, Amit reminded reporters that Bangladesh does not produce petroleum domestically and remains entirely dependent on imported fuel to meet its energy needs.

He explained that the conflict-hit region from which Bangladesh sources much of its fuel has seen its energy markets thrown into turmoil, driving up prices across many countries.

Since fuel imports are settled in foreign currency, Amit said the combined weight of higher global oil prices, rising insurance premiums and mounting import costs had left the government with little room to hold off on a domestic price adjustment any longer.

In a related development, state-run Petrobangla reported that the transfer of liquefied natural gas (LNG) from an imported cargo vessel to the floating LNG terminal has been disrupted due to inclement weather in the Maheshkhali area of Cox’s Bazar, in the Bay of Bengal.

In a press release issued Thursday night, Petrobangla said the disruption has led to an overall decrease in gas supply compared to normal levels. The organisation expressed regret over the temporary inconvenience caused to consumers and assured the public that gas supply would return to normal once weather conditions in the bay improve.