Nasrul Hamid hints at fuel price hike amid global crisis
The government, at some point, will have to "adjust" the fuel prices in line with the global market, says State Minister for Power, Energy and Mineral Resources Nasrul Hamid.
Advising all to be frugal in using oil and gas, he said that this move will not be a burden for the people, he assured in an audio message sent to the media on Thursday.
The state minister said, "Fuel prices in the global market have been on the rise for the past 6-7 months. The [crude] oil we used to buy at $70-71 per barrel is now being sold at $171.
"We have been saying from the start that we will have to adjust fuel prices. We are currently providing subsidies from our own pocket. Even after that, I think we will have to go for price adjustment at some point."
"Countries around the globe have taken various measures to tackle the rising fuel prices. Many have adjusted their prices. Like in India, there is a difference of around Tk35-Tk50/litre for different types of fuels."
The state minister said, "Some 64% of our total electricity is generated from natural gas. Our gas reserves will gradually empty out. It's not a big deal, the big thing is that we made adjustments, we made up for the gas shortage.
"We filled this gap by importing gas from abroad. But the spot market is now under pressure due to the Ukraine war as most of Europe's gas comes from Russia."
Speaking about the ongoing power crisis, Nasrul Hamid said, "This situation is temporary. We have plenty of power plants. We were forced to reduce production due to the gas shortage.
"We are prioritising gas supply to fertiliser plants and other industries. If all of us become economical in using gas then we can definitely overcome this situation."
Dhaka, along with the rest of the country, are now bracing for more frequent power cuts. Power generation has decreased by an average of 2,000 MW per day.
Most of the gas-fired power plants have to be shut down, while private power plants are also on the brink due to rising global oil prices.
The situation is even bleaker outside the capital. The most affected districts are in Mymensingh division, while load shedding has also increased in Chattogram, Sylhet, Rangpur, Thakurgaon, Rajshahi, Gaibandha, Lalmonirhat and Dinajpur, Habiganj, Moulvibazar, Sunamganj, Noakhali, Feni and Chandpur.
Power disruptions are not rare in countries around the world that have all been hit by the gas crisis following the Russia-Ukraine war. Most are turning to proper load management.
Energy experts said a proper and planned load management of the current energy supply could lessen the suffering of the people. Proper load management is the only way to deal with the current gas and power supply cuts as no other visible initiatives are being taken.
Gas prices in Europe and Asia surged more than 60% in the weeks since an important liquified natural gas facility in Texas temporarily shut down. Gas prices have soared since the start of last year, jumping as high as 700% in Europe.
Germany said the gas shortfalls could trigger a Lehman Brothers-like collapse, as Europe's economic powerhouse faces the unprecedented prospect of businesses and consumers running out of power, Bloomberg reported.
The main Nord Stream pipeline that carries Russian gas to Germany is due to shut down on July 11 for ten days of maintenance, and there is a growing fear that Moscow may not reopen it.
Bangladesh Power Development Board (BPDB) said there was a maximum of 1,400MW load shedding at 9pm on Monday in different parts of the country.
Officials at Petrobangla said that the only remedy is meeting demand when fuel price falls in the global market.
