Export goods manufacturers worry and textiles owners report insufficient gas supply as the government goes for fuel rationing for vehicles across Bangladesh to make do with reserves amid the veritable gulf Armageddon
rude oil and Qatari liquefied natural gas (LNG) vessels safe passage through the Hormuz as the war involving the United States, Israel and Iran disrupts one of the world’s most important maritime trade routes.
The conflict, now in its seventh day, has sharply reduced tanker traffic through the narrow waterway, which carries about one-fifth of global oil and LNG supplies.
The disruption has raised crude-oil prices by more than 15 per cent and left hundreds of vessels stranded in the region.
However, Iran has said they will not allow ships belonging to the US-Israel duo and its allies.
On Friday, the Bangladesh Petroleum Corporation or BPC, through a press statement, effected fuel rationing for various modes of transport.
Under contingency arrangement, motorcycles will be allowed to purchase up to 2.0 litres of petrol or octane a day.
Private cars will be permitted to buy up to 10 litres, while SUVs and jeeps may buy between 20 and 25 litres daily.
For diesel-powered vehicles, pickups and local buses, the allocation is between 70 and 80 litres of diesel per day.
Long-distance buses, trucks, covered vans and container trucks will be allowed to purchase between 200 and 220 litres daily.
The BPC warns fuel retailers against hoarding or selling fuel beyond the prescribed limits, saying that “strict action would be taken against any violation.”
Filling stations have been instructed to sell fuel strictly according to the approved guidelines and maintain proper records of transactions.
Consumers will be required to produce the previous purchase receipt when buying fuels.
The state corporation also says, “Dealers must submit their inventory and sales information before withdrawing fuel from depots.”
Fuel-marketing companies – Padma, Meghna and Jamuna– have been instructed to review the sales and stock positions of filling stations before supplying additional fuel.
Authorities urged the public not to panic or engage in unnecessary stockpiling.
“The country currently holds adequate fuel reserves to meet domestic demand,” the government note reassures.
Energy officials say they are closely monitoring global oil markets amid geopolitical uncertainty, warning that any prolonged disruption in Middle Eastern supply routes could have significant implications for fuel-importing economies such as Bangladesh.
The BPC says the country has sufficient fuel stocks and the supply chain remains uninterrupted despite rising tensions in the Middle East, dismissing reports of possible shortages on the domestic market.
In the press release BPC says some media outlets circulated misleading information regarding fuel availability following the escalating crisis in the Middle East, a region that is crucial to global energy supplies.
Bangladesh imports about 90 per cent of its fuel oils to meet domestic demand.
However, the corporation says that the import, storage and distribution of fuel products remain normal, and that authorities are closely monitoring global developments to ensure uninterrupted supply.
Meanwhile, major export-oriented sectors in Bangladesh fear a possible fuel shortage following the escalating Mideast conflict and the reported closure of the Strait of Hormuz, one of world’s key oil-shipping routes.
Industry insiders say the country’s primary textile sector has already been experiencing low gas pressure, raising concerns that the situation could worsen if the conflict persists.
They warn the ongoing slow gas supply could turn into a full-blown crisis unless the government takes quick alternative measures to prevent further disruptions.
Leaders of major export sectors discussed the issue through online meetings and decided to send a joint letter to the minister for power, energy and mineral resources by Sunday for immediate steps to ensure uninterrupted fuel supply.
The conflict has left the Strait of Hormuz almost shut, disrupting the flow of nearly one-fifth of global oil and liquefied natural gas (LNG) supplies.
Benchmark US crude rose 4.1 per cent to $84.36 per barrel on Friday, while Brent crude gained 1.7 per cent to $87 per barrel, near its highest level since April 2024, according to Al Jazeera.
Qatar halted LNG production last Monday as Iran continued striking Gulf countries in retaliation for Israeli and US attacks. Qatar accounts for about 20 per cent of global LNG supply and plays a key role in meeting demand in Asian and European markets.
A textile-mill owner in Rupganj, requesting anonymity, has said low gas pressure over the past few days has worsened following the escalation of the Middle East conflict.
Those industries located in remote areas are facing heat of the low pressure of gas supply.
According to a Petrobangla daily report, Bangladesh supplied 2,574 MMCF of natural gas and 865 MMCF of LNG on March 5, while the supplies were 2,649.1 MMCF of natural gas and 941.9 MMCF of LNG on March 1.
Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), says a prolonged Middle East conflict could affect export industries through higher energy costs and longer lead times. “If the conflict drags on, export sectors will be affected in multiple ways, including losing orders, as global demands may face further slowdown. Bangladesh may also face a gas crisis if LNG imports from alternative sources cannot be secured,” he told the FE.
“We will send a joint letter to the energy minister, urging immediate steps to prevent any unwanted situation,” he added, noting that the issue had already been discussed with government officials and relevant ministers. “Leaders of export sectors are preparing to convey their concerns to the government and seek preventive measures to avert possible consequences.”
Former director of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) MohiuddinRubel says west-bound readymade garment shipments have already been facing longer transit times.
“Since late 2023 and early 2024, almost all sea-bound RMG exports to western markets have been using the Cape of Good Hope route around Africa,” he mentions.
“This has already added time and costs. The additional 10-15 days are delays that have existed since 2023-2024. Any new disruption will only worsen the situation.”
Bangladesh Oil, Gas and Mineral Resources Corporation or Petrobangla actually began rationing gas Wednesday amid mounting energy shortages and uncertainty over LNG imports.
The measures include cutting gas supply to power plants by 50 million cubic feet per day (mmcfd) and temporarily shutting down most fertiliser factories except ShahjalalFertiliser Company Ltd, saving about 130mmcfd gas.
Ministry sources have said a tender issued on March 3 to purchase LNG from the spot market drew no bidders, while another floated on March 4 also received no response. Petrobangla later secured two cargoes through direct negotiations.
Four LNG cargoes scheduled for March have already crossed the Strait of Hormuz, but authorities remain concerned about two additional shipments expected on March 15 and 18.
https://today.thefinancialexpress.com.bd/public/first-page/govt-goes-for-gas-rationing-as-gulf-turmoil-pinches-1772819822