Prime Minister’s Adviser on Information and Broadcasting Dr Zahed Ur Rahman on Wednesday said the government may consider adjusting fuel prices if the ongoing conflict in the Middle East prolongs and worsens.
“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.
Clarifying that there will be no fuel price hike in April, the adviser said, “We have already said that if the situation continues, some adjustment in prices may be necessary. I am saying it may be necessary — not that it will definitely happen,” he said, urging the media not to misinterpret his remarks.
The adviser said temporary disruptions at the country’s only state-owned refinery, Eastern Refinery Limited, have created some pressure.
The refinery typically supplies around 25 percent of the country’s fuel demand, particularly petrol and octane.
“The delayed arrival of a 1,00,000-ton fuel shipment from Saudi Arabia has further strained the situation. Another shipment is expected to arrive in early May,” he said.
The government has taken measures by increasing imports of refined fuel and building up reserves to address any potential crisis.
The issue has also been discussed in a high-level meeting with the Prime Minister, he noted.
Acknowledging the signs of strain at the consumer level with long queues seen at petrol pumps in Dhaka and other areas, Dr Zahed said vehicles were seen purchasing fuel multiple times or in excess of their immediate needs, adding pressure to the supply system.
He said that although supply to petrol pumps has not been reduced stocks are depleting quickly due to unusually high demand.
Detailed pump-wise supply data will be published soon, he added.