State minister for power, energy and mineral resources Nasrul Hamid asked the people to be patient for a couple of months, after which fuel prices will come down.
The state minister said that the government had no intention to unsettle the lives of the masses. But after subsidising fuel for six months straight, the government had to adjust the prices. He asked the people to be patient for 1-2 months and show austerity and said the fuel prices will be again adjusted once the prices fall in the global market.
Nasrul Ahmed said this on Sunday during a seminar on ‘Energy situation in Bangladesh: volatile global market’.
He said, different experts are prescribing different suggestions. They are saying things like, why didn’t we search for oil fields in the sea, why hasn’t gas production increased? The government tries its level best. But this is not the time for a long-term plan. We need immediate solutions.
The state minister said that even 4-5 months back, there was no crisis of power and energy in the country. He said we are going through a global crisis. Every country is taking different measures. Nobody could’ve guessed that there would be a war in Ukraine. The global situation is under constant observation. The government has taken precautionary steps. He was also hopeful that by the end of next month the load shedding situation will improve.
The state minister further said, from 2009 to 2022, hundreds of new factories have started operations. Bangladesh is second in the world in the readymade garments sector. The demand for gas is extremely high.
That’s why they began importing Liquefied Natural Gas (LNG). Some 108 economic zones will open very soon. There are plans for increasing the production of gas-based power plants to 15,000 megawatts. The demand for gas could increase in the future. That’s why, they have taken steps to increase production and also increase imports. They have undertaken multiple projects to increase production of gas in land and in sea.
Senior secretary of the energy department Mahbub Hossain said, different initiatives have been taken to increase production of natural gas by almost one billion square feet. By 2025, we will explore 46 reserves and increase gas production by at least 0.6 billion square feet. The ministry is preparing to call for tenders to explore offshore oil and gas reserves.
The joint president of the Consumer Association of Bangladesh (CAB) M Shamsul Alam has opposed increasing fuel prices by an executive order. He said Bangladesh Energy Regulatory Commission (BERC) has the power to set the fuel prices. The energy department doesn’t have the right to change the price. He claimed that a desire to run the energy sector with a commercial mindset is the reason behind the price hike. There are charges of irregularity against the Bangladesh Petroleum Corporation (BPC). These need to be addressed.
Geologist Badrul Imam expressed disappointment about the gas exploration initiatives of the country. He said, we are sufficient in electricity, the only problem is the lack of fuel. And the main reason behind this shortage is neglecting our own fuel sources. The government is guilty of it. Had the government properly explored for fuel sources and increased production, this crisis wouldn’t have happened. There are no good answers to the question of why we haven’t started exploring for offshore oil reserves.
Chairman of the government owned petrol company PetroBangla Najmul Ahsan said, even last year they bought LNG from the open market for $12.5. This year, the price increased to $40. Hence they have stopped buying LNG from the open market.
Senior researcher of Bangladesh Institute of International and Strategic Studies (BIISS) Mahfuz Kabir said inflation will increase in the next few months. The situation will take a turn for the worse in employment, power and industry sectors.
Forum for Energy Reporters of Bangladesh (FERB) organised the seminar. The former chairman of FERB Amjad Hossain read the keynote address.