Bangladesh yesterday secured two LNG cargoes from the international spot market after failing to attract bidders for two consecutive days, although at more than double the normal rate.
The move comes as two scheduled LNG shipments from Qatar remained uncertain due to the closure of the Strait of Hormuz by Iran, The Daily Star has learnt from Petrobangla officials involved with the proceedings.
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One cargo will be delivered at $24.5 per one million British Thermal Units (MMBtu) by VitolAsia and another at $28 per MMbtu by Gunvor.
It cost more than double the usual rate: each shipment would cost about Tk 1,300 crore compared with about Tk 500 crore previously, they said.
Besides, with the view to safeguarding the fuel stock amid a looming global energy crisis, the government yesterday called for conservation of natural gas and fuel oil and urged people to shun panic buying and fuel hoarding.
The country currently has 15 days’ stock of petrol and 30 days’ octane, while diesel reserves stand at about 12 days, according to officials at the Bangladesh Petroleum Corporation (BPC).
As per latest data, the country has around 37,000 tonnes of petrol and 53,000 tonnes of octane in stock. Besides, there are local condensate sources for producing such fuel oils.
Though diesel stock is now at around 180,000 tonnes in the depots, two consignments of diesel have already anchored at the port, which contains another 57,000 tonnes combined, according to BPC officials.
Usually, the average daily diesel sales range between 12,000 and 13,000 tonnes, but over the last couple of days, sales have exceeded 20,000 tonnes on average.
About 20 percent of Bangladesh’s fuel imports are crude oil shipped through the Strait of Hormuz, while the remaining 80 percent of refined petroleum products are imported from ports in China, Singapore, Malaysia and Indonesia.
As a result, although crude oil supply has been disrupted, there is no problem regarding the refined oil. In some cases, the shipments are being delayed, but none of the contracts has been cancelled yet, said an official who was involved with the proceedings.
“There is no major problem with fuel supply, but panic buying is creating some pressure -- people should avoid hoarding fuel,” Iqbal Hassan Mahmood Tuku, the power, energy and mineral resources minister, told The Daily Star.
The government has taken precautionary steps to conserve energy so that existing stocks can last longer, he added.
In separate notices, the power, energy and mineral resources ministry and the cabinet division asked all government offices, autonomous bodies and corporations to adopt strict energy-saving practices, including limiting lighting and setting air conditioners at 25 degrees Celsius or higher.
The directives also urged households, institutions and businesses to conserve natural gas and fuel oil by avoiding unnecessary use, preventing gas leakages and encouraging the use of public transport and carpooling to reduce fuel consumption.
Prime Minister Tarique Rahman also instructed the ministers and secretaries to practice austerity in the use of electricity and fuel.
He asked cabinet members and secretaries who live in the same residential buildings to consider using shared transport when commuting to and from the Secretariat, as part of broader efforts to reduce fuel consumption.
The meeting happened in reduced lighting, as part of the government’s austerity drives to conserve electricity and energy.
The Daily Star visited two separate cabinet members after the meeting and found both working by using daylight through open curtains and having their air conditioning systems set to 25 degrees Celsius.
And yet, fears of a possible fuel shortage triggered panic buying in Dhaka yesterday, with long queues of private cars and motorcycles seen at petrol pumps across the capital.
At several stations, the lines of vehicles stretched beyond the pump premises onto nearby roads, causing traffic congestion and requiring additional traffic police intervention.
The pressure on pumps has more than doubled in recent days, said Mohammad Nazmul Haque, president of the Bangladesh Petroleum Dealers, Distributors, Agents and Petrol Pump Owners Association.
“It’s happening everywhere across the country. Earlier, if a vehicle usually took 10 litres, now it is filling the tank. Even motorcycles that normally buy very small amounts are filling up.”
If this panic buying continues, the fuel stock could be exhausted in 10 days even if the government maintains enough to last a month normally.
The fuel supply remained normal until noon yesterday.
“After that, we received instructions that supply would be reduced by about 10 percent, compared with the amount sold during March–May last year,” he added.
Meanwhile, bottled liquefied petroleum gas (LPG) importers yesterday met with Tuku at his office and informed him that they were facing difficulties importing LPG, including problems in opening letters of credit.
A cargo containing 10,000 tonnes of LPG had halted its journey near Sri Lanka after a ship was attacked in the area, they said.
Another cargo carrying 35,000 tonnes of LPG was on its way, which may help achieve the target of importing 150,000 tonnes of LPG in March.
However, shipping costs have nearly doubled compared with the usual rates.
Subsequently, they urged the ministry to increase LPG prices.
In response, Tuku said the matter would be considered by the Bangladesh Energy Regulatory Commission but urged businesses not to increase prices on their own.
