Fuel oil price may rise again: State minister

State minister for power, energy and mineral resources Nasrul HamidFile photo

The price of fuel oil may rise again in the local market in the context of increased price in the global market.

State minister for power, energy and mineral resources Nasrul Hamid came up with the indication through an audio message sent to the media on Thursday.

The government is providing subsidy to keep the fuel oil price affordable in the country. But it seems that the price might have to be adjusted after a certain period, he said.

Explaining the global market scenario, state minister Nasrul Hamid said, “We have been witnessing a rising trend in fuel oil price for the last six to seven months. The oil that we used to buy at $70 to $71 now costs $171 and the rising continues.”

He referred to fuel oil price hikes in other countries and said they took various initiatives due to the fuel price hike in the global market and adjusted local prices. Even neighboring India raised the fuel oil price by Tk 35 to Tk 50 per liter.

Regarding the recent loadshedding, the state minister said some 64 per cent of power plants in the country run using gas supplied from domestic sources. “We are increasing supply of our natural gas day by day; it is also decreasing in a sense. We have been saying for the last 10 years that our gas reserves will decrease gradually.”

The demand for fuel has increased sharply in the open market across the world. The Russia-Ukraine war hit the fuel market hard as most of the European nations are customers of Russian gas.

In an aftermath, the gas price, which was $4 in the open market, has now jumped to $30 and countries, including Bangladesh, are struggling to cope with the increased price, he said.

“It will not be possible to manage the increased price even with the government subsidy. And if we continue to raise prices, there will be tremendous pressure on the people. I have long been saying that the prime minister Sheikh Hasina will not do anything that may create a burden on the people.

“This is why we have adjusted the gas price slightly and not the oil price. I hope everyone will understand the issue and be patient,” he continued.

However, the state minister thinks that the recent fuel crisis is temporary. Prime minister Sheikh Hasina recently urged the authorities concerned to formulate an area-based loadshedding schedule.

State minister Nasrud Hamid called upon the people to be economical while using gas in an effort to combat the prevailing crisis.