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State Minister for Energy, Vitality and Mineral Assets Nasrul Hamid says Bangladesh might must ‘regulate’ gas costs to raised replicate the turmoil within the worldwide market because the Ukraine warfare continues to drive up prices.
“The worth of gas within the international market has been climbing for the final six or seven months. The oil we used to purchase for round $70-71 a barrel now prices $171 and it’s solely rising,” he mentioned in an audio message to the media on Thursday.
Whereas the federal government has been subsidising gas imports amid the disaster, it should take into account adjusting costs in some unspecified time in the future, in line with Hamid.
“Nations world wide have taken numerous measures to deal with the rise in gas costs. Take neighbouring India, for instance, the place there’s a distinction of round Tk 35 to Tk 50 per litre for several types of gas.”
Hamid additionally touched on the dwindling pure gasoline provide that compelled the federal government to scale down electrical energy technology. Round 64 % of energy vegetation in Bangladesh run on pure gasoline, however the reserves will ultimately dry up, he warned.
“I’ve been saying for the final 10 years that our gasoline provide is declining. However we made changes to deal with any shortages by importing gasoline from overseas.”
Gas is imported in two methods: one is thru long-term contracts and the opposite is to purchase from the spot market, in line with Hamid. Nevertheless, the spot market is now beneath intense stress as costs are hovering because of the battle in Ukraine, significantly as most of Europe’s gasoline provide comes from Russia.
“Nearly all European nations are depending on this gasoline and in consequence, the value of gasoline has gone up from $4 to nearly $30 within the spot market.”
Even with authorities subsidies, it will not be doable to satisfy the spiralling prices whereas, however, strange folks must bear an enormous burden if the authorities hold elevating costs, in line with Hamid.
Hamid pressured the should be frugal when it comes to vitality consumption beneath the circumstances and urged the general public to be affected person.
“It is a short-term scenario. Now we have many energy vegetation. However we needed to cut back their output because of the gasoline scarcity. Now we have prioritised our gasoline provide for fertiliser vegetation and different industries. And if everyone seems to be a bit economical with their use of gasoline, then we are able to undoubtedly come out of this cycle.”
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