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Energy crisis: Austerity measures fall short

Energy crisis: Austerity measures fall short
Representational image: Collected
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Government efforts to manage the ongoing energy crisis through shorter office hours, reduced shopping mall operations and restrictions on excessive lightings are having limited impact, as demand continues to surge amid public anxiety.

Experts say the measures, aimed at saving energy, mainly target the commercial sector. However, overall consumption is still driven largely by households and transport use, noted several energy sector experts.

According to the annual report for the 2024-25 fiscal year published by the Bangladesh Power Development Board, the commercial sector accounts for 12.38% of total electricity consumption, while the domestic sector consumes about 48.42%.

Ijaz Hossain, a professor at Bangladesh University of Engineering and Technology, told TIMES of Bangladesh that the current measures are unlikely to bring significant savings as they focus on a relatively small segment of total energy use.

“Changing office hours or reducing commercial activity will have some impact, but not a substantial one,” he said. “People still need to travel, and in many cases, energy use shifts to households rather than decreasing.”

He said traffic congestion remains a major but overlooked factor behind fuel consumption.

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“A large amount of fuel is wasted as vehicles sit in traffic. Better traffic management could save a significant amount of fuel,” he said, adding that reducing the number of vehicles on the road would be the most effective solution.

Hossain also suggested expanding fuel rationing measures across government offices.

“If the condition requiring the prime minister, ministers and state ministers to cut their monthly fuel use for official vehicles by 30% were applied to all government offices, it could be a major step toward saving fuel,” he said.

While the current steps may reduce some electricity use, they have little direct effect on fuel consumption in the transport sector, where pressure is most visible.

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M Tamim, another expert on the energy sector, told TIMES that the crisis is being driven more by a surge in demand than by an actual shortage under normal conditions, while agreeing that traffic congestion remains a major issue.

“There is no shortage if demand remains normal, but what we are seeing now is abnormal demand,” he said. “People are trying to fill their tanks repeatedly because they are uncertain about future supply.”

He said daily octane demand, usually around 1,100-1,200 tonnes, has risen to nearly 2,000 tonnes in recent days, largely due to panic buying.

Such demand could quickly deplete existing reserves.

“If stock is calculated for seven days based on normal demand, it could run out in three to four days under current conditions,” Tamim warned.

Bangladesh remains partly dependent on imports for refined fuel, with about half of its octane demand met from abroad. At the same time, declining gas output has reduced local condensate supply, limiting domestic production.

Uncertainty in global energy markets has added to concerns, fuelling public anxiety and pushing demand even higher.

At the distribution level, irregular supply to filling stations may also be contributing to local shortages.

Attempts to obtain a response from Mohammad Saiful Islam, secretary of the Energy and Mineral Resources Division, were unsuccessful, as calls and text messages went unanswered.

Analysts stressed that alternative steps – such as introducing a weekly general holiday, reducing the number of vehicles on roads, and improving traffic management – could help bring more meaningful fuel savings.

Meanwhile, uncertainty over fuel availability is creating anxiety among consumers, further driving up demand.

Ride-sharing driver Mostofa Ahmed said he often struggles to secure fuel.

“There is uncertainty about getting fuel at pumps. Sometimes I stand in line with almost no fuel left, and it runs out before my turn,” he said. “So, whenever I get the chance, I try to fill more fuel than usual.”

Experts said the situation could stabilise in the short term if demand returns to normal and global conditions do not worsen, but warned that the overall outlook remains fragile.

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