Fuel Sales Jump as Bangladesh Factories Battle Gas Shortage
Bangladesh’s industrial sector is now buying much more diesel and furnace oil. This happens because of a severe shortage of natural gas and electricity. Factories are using these fuels to keep their production lines running.
Data from the first 15 days of August shows a big increase in fuel sales. Three state-owned companies sell this fuel: Padma Oil, Meghna Petroleum, and Jamuna Oil. Padma Oil’s total diesel sales increased by nearly 29 percent. Its furnace oil sales went up by 174 percent.
Meghna Petroleum saw its diesel sales grow by almost 21 percent. Furnace oil sales jumped by 152 percent for Meghna. Jamuna Oil reported a 33 percent rise in industrial diesel sales. Its furnace oil sales to industries and power plants increased by 224 percent. These numbers are much higher than for the same time last year.
The gas crisis worsened after a fire at an LNG terminal in Maheshkhali on July 21. Bangladesh normally receives 1 billion to 1.1 billion cubic feet of gas daily from two terminals. After the accident, gas supply dropped for about 25 days.
Even though one terminal partially restarted, the relief was short. Gas supply from one terminal stopped completely last Wednesday. Now, the national grid gets about 2.22 billion cubic feet of gas daily. However, the country needs about 3.80 billion cubic feet. This is a large gap.
Many factories are now relying on diesel generators for electricity. They also use furnace oil for heat in boilers and furnaces. For example, Insepta Pharmaceuticals bought 67 percent more diesel this August than last year. Acme Laboratories increased its diesel use by almost 306 percent. Eskayef Pharmaceuticals saw a 700 percent increase in diesel purchases.
Over 500 factories regularly buy fuel from these three companies. About 40 to 50 percent of them are now buying extra diesel and furnace oil. This keeps production going but makes it more expensive.
Mr. Tapan Sengupta from BSRM, a steel company, said their oil use increased by up to 70 percent. This raised their production costs by at least four times. Mr. Md. Zakir Hossain of Delta Pharma said making electricity with a diesel generator costs three times more than using grid power.
The Bangladesh Petroleum Corporation (BPC) confirms the higher demand. In the first 15 days of August, diesel sales were 22 percent higher than last August’s daily average. Furnace oil sales were 76 percent higher. BPC Chairman Md. Manzur Alam Pradhan stated that there is no shortage of fuel in reserves. Regular oil tankers are arriving. A new LNG cargo is expected soon, which might ease the gas shortage.
