United News of Bangladesh

Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood on Sunday said unscrupulous traders are hoarding and black marketing fuel in different parts of the country, creating an artificial fuel crisis. “An artificial crisis is being created due to panic buying and hoarding,” he said in response to a tabled question from opposition MP elected from Netrakona-5 Masum Mustafa in Parliament. The Minister said that there is no fuel crisis in the country and the statement made by State Minister for Foreign Affairs Shama Obaed Islam in Parliament is correct. The Minister said in order to maintain normal fuel supply, district, upazila administrations and Bangladesh Petroleum Corporation (BPC) tag officers have been appointed across the country. Every day, he said that hoarders are being brought under law by magistrates and jail terms or fines are being imposed. “The law enforcement agencies are working to prevent hoarding and black marketing.” Besides, awareness activities have been taken by local administrations, he added. So far, the Minister said, 3,510 cases have been filed through mobile courts drives across the country, a fine of Tk 1.56 crore has been collected and 5.42 lakh liters of fuel have been seized. He said that in order to bring greater transparency in fuel marketing at the consumer level, the government has introduced fuel cards on an experimental basis at some filling stations in Dhaka city. “If the trials are successful, it will be implemented nationwide. The fuel card will store the information about the fuel oil collection of the customers.” In response to a question from government party MP elected from Pabna-5 Md. Shamsur Rahman Simul Biswas, Iqbal Hassan said the country's LPG market is about 98.67 percent import-dependent. “The LPG import situation is being monitored regularly to keep the supply of LPG normal in the country amid the ongoing war situation in the Middle East,” he added. To this end, he said, the LPG import situation in the country is being regularly reviewed from the National Board of Revenue's Asycuda World System and if any abnormality is found, importers are being contacted. Moreover, the Bangladesh Energy Regulatory Commission is being informed for taking action.  

The government has increased the prices of all types of fuel at the consumer level in line with the rise in global fuel prices. Following the hike, the price of diesel rises to Tk 115 per litre from Tk 100 per litre, octane rises to Tk 140 per litre from Tk 120 per litre, petrol to Tk 135 per litre from Tk 116 per litre, and kerosene to Tk 130 per litre from Tk 112 per litre, said a PID handout. The new prices will come into effect from Sunday. In raising the prices in the middle of the month, the government circumvented the system introduced in March 2024, whereby an automatic pricing formula is used to fix fuel prices on a monthly basis, with prices for the following month announced at the end of each month. As a result, diesel prices have gone up by Tk 15 per litre, octane by Tk 20, petrol by Tk 19, and kerosene by Tk 18. Fuel crisis hits Rangpur, motorists spend hours in queues Previously, fuel prices were reduced by Tk 2 per litre on February 1. The revised rates remained unchanged in March and were also maintained in April despite fluctuations in the global market. The recent escalation of tensions in the Middle East, following joint attacks by the United States and Israel on Iran, has contributed to instability in global energy markets. The situation has particularly affected the Strait of Hormuz, a key route through which a significant portion of the world’s oil supply is transported. The impact has also been felt in Bangladesh, where there has been a surge in demand at petrol stations in recent days. Fuel prices may rise if Middle East conflict prolongs: PM’s Adviser Zahed Consumers reported difficulties obtaining fuel, although the government assured that sufficient stocks are available and supply remains normal. Authorities have also taken action against illegal stockpiling. The Energy Department said that more than 500,000 litres of fuel have been recovered during nationwide drives targeting hoarding. Earlier, the government had indicated it would try to avoid raising fuel prices to ease public hardship. However, Prime Minister’s Adviser on Information and Broadcasting Dr Zahed Ur Rahman said on Wednesday that the government may consider adjusting fuel prices if the ongoing conflict in the Middle East prolongs and worsens. Govt enforces sweeping austerity measures: Cuts fuel use, suspends car loans “It is not certain yet. The situation in the Middle East could deteriorate or it could improve through negotiations. Tensions involving shipping routes and Iran could negatively impact the global energy market if the situation persists for a prolonged period. If this continues for long, it will be difficult to maintain subsidies indefinitely,” he told reporters at the conference room of the Department of Information at Secretariat. Any decision on fuel price adjustment would depend on the evolving global situation, he added.  

The election to the Bangladesh Bar Council, the regulatory body for lawyers across the country, has been postponed amid the ongoing fuel crisis triggered by the Middle East conflict. The decision was announced in a press release issued on Wednesday. According to the previously announced schedule, the election was set to be held on May 19. The release said the decision to postpone the polls was taken at an emergency meeting held at the Bar Council building on Wednesday. The decision comes amid concerns that the fuel crisis across the country could disrupt election-related activities and campaigning. It also said the decision was made after considering requests from various bar associations, including the Supreme Court Bar Association, Dhaka Bar Association and Chattogram District Bar Association. The election was scheduled to fill 14 posts, including seven general seats and seven regional seats. The Bar Council election is held every three years. Of the 14 members, seven are elected from general seats, while the remaining seven are elected from regional bar associations. The vice chairman is elected by the 14 members, while the attorney general serves as the chairman of the council by virtue of the position.

A school teacher died after suffering a heart attack reportedly while waiting in a queue to buy fuel at a filling station in Rangpur on Saturday night. The deceased was identified as Mehedi Hasan, son of Matiur Rahman from the New Engineer Para area of the city. He was a teacher at Balakuar Chowrar Hat Government Primary School. Family members said Mehedi Hasan had gone to a filling station at Parjatan Mor to purchase fuel. While standing in line he fell sick and was immediately taken to Rangpur Medical College Hospita, where doctors declared him dead, they said. Officer-in-Charge of Rangpur Metropolitan Kotwali Police Station Azad Rahman  said police received information that a man had died after falling sick while waiting in queue at the fuel station. “He might have suffered a heart attack while standing in the queue,” the OC added.

Bangladesh Shadharon Nagorik Shamaj, a civil society platform, on Saturday urged all stakeholders not to create any artificial fuel shortage in the country taking advantage of the ongoing situation in the Middle East. In a statement, the organisation’s convener Mohiuddin Ahmed called on people not to spread  panic among the public over the uncertainty surrounding global fuel supply triggered by the conflict in the Middle East. The platform said a dishonest group of traders might attempt to create an artificial crisis in the domestic market by using the international situation as an excuse. At the same time, it warned that instability in the fuel supply management could also arise due to some wrong and unplanned decisions by the Bangladesh Petroleum Corporation (BPC) and Petrobangla. However, according to various sources, the country currently has adequate fuel reserves, the statement said. Therefore, the organisation urged all concerned to refrain from spreading rumours or creating unnecessary panic that could trigger fear among the public. Bangladesh Shadharon Nagorik Shamaj also called on the relevant government agencies to ensure transparency in fuel supply and stock management, strengthen market monitoring, and take strict action against dishonest traders to prevent any artificial crisis. The organisation urged all stakeholders to act responsibly to safeguard the country’s energy security and protect public interests.

Bangladesh's interim government has decreased the prices of petroleum fuels at the retail level with effect from September 1. As per a gazette notification issued by the Energy and Mineral Resources Division on Saturday, the price of diesel and kerosine at the consumer level will be Tk 105.50 per litre, down by Tk 1.25, from the previous price of Tk 106.75. Price of petrol will be decreased by Tk 6 to Tk 121 per litre, from the previous price of Tk 127.  Read more: Govt's executive authority to raise power and gas prices cancelled through ordinance Price of octane will also be decreased by Tk 6 to 125 per litre, from the previous price of Tk 131 per litre.  The new prices of petroleum fuels have been set in continuation of every month’s adjustment process under an automatic pricing formula in line with the global market price, said the Energy and Mineral Resources Division. 

Ahead of the upcoming 12th National Parliamentary Election, the ruling Awami League has announced its election manifesto, committing to extend modern urban amenities to every village. The manifesto, with the slogan “Smart Bangladesh: Visible Development, Increased Employment,” was announced by Awami League President and Prime Minister Sheikh Hasina today (December 27, 2023) at the Pan Pacific Hotel Sonargaon in Dhaka. The manifesto promises to enhance the quality of life in villages by providing improved roadways, communication, clean drinking water, modern healthcare and medical treatment, quality education, advanced sanitation and waste management, increased electricity and fuel supply, computer and high-speed internet facilities, and expanded markets. These initiatives aim to bring all the comforts of modern cities to every village. In Smart Bangladesh Awami League seeks more safeguards for minorities, end of intolerance To ensure a reliable fuel supply, the party plans to continue encouraging and supporting the installation of biogas plants and solar panels on a group basis. The establishment of agricultural machinery service centers and workshops in villages will expand rural mechanization services, including machinery repair. This initiative will also provide training for rural youth and agricultural entrepreneurs, promoting productive employment. The manifesto includes plans for private sector investment and loan support for small and marginal entrepreneurs manufacturing and marketing light machinery. In line with the economic development of villages, cultural, sports, and entertainment programs will be expanded. This approach is expected to reduce the urban migration trend among rural youth by creating self-employment opportunities within villages. The government will fully support young people's involvement in agriculture, industry, and business. AL Manifesto on Significant Steps to Foster Women Entrepreneurs Awami League says that during its previous tenure, roads in every upazila were improved and expanded, connecting each village to upazila headquarters and linking upazilas to district headquarters and national highways. Every village has been ensured electricity supply. Drinking water and sanitation facilities have been enhanced and will be further improved. The government has taken over the expenses of primary and secondary schools, and financial support is being provided for teachers' salaries in private schools. Hospitals with 50 beds in upazilas are being upgraded to 100-bed facilities. Community clinics are bringing healthcare services to the doorstep of rural residents. Every union now has computer and internet service centers, providing employment opportunities to rural youth and facilitating communication nationally and internationally. Awami League’s Manifesto: Mega Projects for Accelerating Economic Momentum The expansion of communication, electricity, and internet services has accelerated rural production and market systems. Agricultural inputs have become more accessible, and the market for agricultural products has expanded. The extension of agricultural technology and the development of cottage and small industries are being expedited. Activities in both agricultural and non-agricultural sectors have multiplied significantly in rural areas.

An indefinite strike called by fuel traders in Khulna is underway since this morning (September 03, 2023) to realise their three-point demand including hiking commission on fuel sales. Moving fuel from Padma, Jamuna and Meghna oil depots has remained suspended since 8 am. Bangladesh Tank-Lorry Owners’ Association, Bangladesh Fuel Oil Distributors Association, Khulna Divisional Tank-Lorry Workers’ Union and Padma, Meghna and Jamuna Tank-Lorry Workers’ Welfare Association are observing the strike. Their demands include raising commission on fuel sales to at least 7.5 percent, setting the tank-lorry economic life to 50 years, and issuing a gazette notification mentioning fuel traders as commission agents as per previous pledges. Read: Khulna fuel traders threaten strike from Sept 3 if demands not met As news of the strike surfaced earlier, a huge number of motorbikes and private vehicles were seen forming queues at fuel pumps in Khulna on Saturday night. Claiming their demands as logical, Md Muraduzzaman, a leader of petrol pump owners’ association, said they were forced to start the strike from Sunday morning as their demands were not met by August 31. The strike will end when their three-point demand is met, he said. Read: Sylhet’s Osmani hospital’s intern doctors call off strike

Fuel traders in Khulna threatened to go for an indefinite strike from September 3 if their three-point demand, including raising sales commission, is not met by August 31.Abdul Gaffar Biswas, president of Khulna District Petrol Pump Owners Association made the announcement after a meeting with fuel traders in the New Market area of Khulna city on Wednesday night. Sylhet’s Osmani hospital’s intern doctors call off strikeBesides raising sales commission, the other demands are setting the tank-lorry economic life to 50 years and issuing a gazette notification as per the pledges. Ambulance owners call strike from TuesdayAbdul Gaffar said they have placed their three-point demand several times but the government did not pay heed. That’s why the fuel traders decided to go for an indefinite strike from September 3. One-Point Demand: Over 200 freedom fighters to observe hunger strike in city Monday  

Removal of discrepancies in the import duties imposed on primary fuels, which are used as inputs in power generation, can reduce the government’s subsidies in the power and energy sector. The notion is being put forward by the private power producers of the country, also known as IPPs (independent power producers). They are claiming that the discriminatory import taxes on primary fuels - furnace oil (diesel), coal, and gas (LNG) - ultimately favours the coal-fired power plants that projects the government’s biases towards ‘the dirtiest fuel’. Currently there is a 5 percent duty on the import of coal, which rises to  34 percent on furnace oil, aka heavy fuel oil (HFO), and 22 percent on gas. Read more: Ilisha-1 country’s 29th gas field: Nasrul Hamid As a result, the price per MMBtu (metric million British Thermal Unit) of coal comes to Tk 10-11 and when power is generated from coal, it costs Tk 12-13. After adding 5 percent import duty, the cost of electricity from coal-fired power plants becomes Tk 13-14.   On the other hand, the price per MMBtu of HFO comes to Tk 11-12 and the power generation from the HFO costs Tk 11-12 due to its higher heat value. But when the 34 percent import duty on HFO is added, its power generation cost becomes Tk 15-16 per unit. In the same way, the cost per MMBtu of imported gas is Tk 11-12 and its power generation cost becomes 10-11 due to its higher heat value. But after adding the import duty of 22 percent, the per unit electricity generation cost from gas-fired plants goes up to 13-14 per unit. “If the discrepancies are removed from duty regime, and import duty on all fuels is made uniform at 22 percent, the production cost of electricity from diesel-fired plants will be lower than that of coal-fired power plants,” said Imran Karim, former president of Bangladesh Independent Power Producers Association (BIPPA), the trade body representing the interests of private power producers. Read more: Many big industries using illegal gas connections: Nasrul Hamid Karim, also the vice chairman of Confidence Group, a leading firm in private power generation, said the duty should be uniform considering the government’s commitment to support cleaner fuels - coal being the original dirty fuel. Furnace oil of course is no better. “The government will receive more revenue from imported fuels, if the duty on all fuels are equalised,” he added.  According to the Power, Energy and Mineral Resources Ministry’s estimate, in the current fiscal 2022-23, the power and energy sector will require over Tk 23,000 in subsidies to cover its losses. Of this, the power sector will require Tk 18,000 crore while around Tk 6000 crore would go on primary fuels. Read more: New PSC: Petrobangla awaits final nods to invite int’l bidding for offshore blocks Earlier, the loss in the sector was estimated much higher at over Tk 70,000 crore due to the excessive price hike of gas, coal and petroleum fuel following the war in Ukraine that began in February 2022. But after the enhancement of fuel prices on the domestic market by more than 40 percent pn average and power tariff by more than 15 percent, the losses came down and subsequently the requirement for subsidy was also reduced to around Tk 23,000 crore, said officials at the Ministry of Power, Energy and Mineral Resources. Private power producers claim that if the import duty on coal and furnace oil were made the same as that on gas, i.e. 22 percent, it would reduce overall costs and thus reduce the subsidy as well. “Because, the power generation by furnace oil-based plants will automatically go down and it will ultimately have an impact on the overall tariff structure in the power sector by seeping through to both the wholesale and retail levels,” said an IPP plant operator. Read more: Petrobangla initiates move to end foreign company’s monopoly in pre-paid gas metering system Power Cell director general Mohammad Hossain said that both coal and furnace oil are dirty fuels, so by the IPPs’ logic, the import duty on these two fuels should be higher than on gas - not uniform. “The import duty on coal and HFO should be equal and import duty on gas could be comparatively lower as it is the cleanest of the three,” he said.