Energy prices may have to be increased if the ongoing Middle East conflict becomes prolonged although such a move could trigger inflationary pressure, energy expert Prof Dr M Tamim said on Saturday. Report UNB
He made the remarks while speaking as the chief guest at a shadow parliament titled ‘Energy crisis can be addressed through strengthening domestic system’, organized by Debate for Democracy at the FDC in the capital.
Prof Tamim said Bangladesh has become vulnerable to global supply disruptions due to past policies that increased import dependency while neglecting domestic energy development.
He said before the Middle East crisis the country had fuel reserves for only two days , yet there was no panic, whereas now public anxiety persists despite reserves lasting between 7 and 15 days.
“People are panic-buying petrol and octane beyond their needs although the real concern should be diesel supply,” he said.
He also alleged that past misinformation regarding fuel reserves and supply has eroded public trust in official data.
Highlighting regional comparisons, he said fuel prices in Pakistan are nearly double those in Bangladesh and any price hike domestically could lead to significant inflation.
However, he cautioned that continuing subsidies indefinitely would not be sustainable for the government.
Prof Tamim said the Bangladesh Petroleum Corporation (BPC) made consistent annual profits of over Tk 3,000 crore in recent years, accumulating around Tk 30,000 crore over the past decade, but failed to retain sufficient reserves for crisis management.
Presiding over the event, Hasan Ahmed Chowdhury Kiron said flawed policies in the past have weakened the country’s energy security, which is now being exposed amid global instability.
He criticized past energy agreements including quick rental power arrangements and power import deals, saying these should be reviewed to ensure national interest.
Kiron said although the government is currently providing a daily subsidy of around Tk 167 crore on fuel to keep prices stable, there are plans to adjust prices in line with the global market.
He urged people to avoid panic buying and hoarding, and called for stronger monitoring by intelligence agencies to prevent any attempts to create artificial instability in the fuel market.
In the debate competition debaters from State University of Bangladesh emerged winners, defeating Bangladesh University of Business and Technology.
At the end of the program, trophies, crests and certificates were distributed among the participants.
