While the recent energy crisis took a severe turn due to panic buying, long-standing structural weaknesses, policy inconsistencies, and growing risks of import dependence are the underlying causes, experts said at a webinar today.
Organised by the Power and Participation Research Centre (PPRC) on Saturday, the webinar titled “Economy Trapped in the Fuel Trap?” was moderated by economist Hossain Zillur Rahman.
Petrol Pump Owners Association Chairman Mohammad Nazmul Haque said fuel sales between the 4th and 8th of the month were two and a half times normal. “This was purely panic buying.”
He added that decisions such as introducing and quickly withdrawing rationing confused people and increased hoarding tendencies.
Bangladesh Chamber of Industries (BCI) President Anwar-ul Alam Chowdhury Parvez said announcements about rationing and austerity panicked people, and inconsistent policy messaging accelerated the panic situation.
On the industrial sector, Parvez said production has dropped by 40-45 percent due to the ongoing energy crisis, while production costs have risen by 30-35 percent. Small business sales have also significantly declined.
Agricultural scientist Professor Sattar Mondal said approximately 42 lakh diesel-powered machinery is used in the country. “Agriculture is now fuel-dependent. Boro production is facing potential losses due to disruptions in irrigation.”
He expressed concern that rising fuel costs would increase irrigation expenses, ultimately putting pressure on farmers and potentially affecting food security.
Padma Oil Chairman and former energy secretary AKM Zafar Ullah Khan said raising prices did not directly reduce demand, but it did reduce the tendency to hoard for selling at higher prices.
“It is difficult to handle such pressure without maintaining a strategic reserve of 45 to 60 days,” he added.
Syed Mahmudul Haque, Chairman of Trade International Services, said that due to LC draft limitations, LNG cannot be imported in large vessels, increasing costs.
“Three to four companies now control 60-70 percent of the market, creating risks for supply and prices,” he noted.
Energy journalist Molla Amjad Hossain said, “This is not a crisis of one day — it is the result of a long-term decision-making process.” He said increased import dependence is creating additional pressure on the economy.
Moderator Hossain Zillur Rahman said, “This crisis has shown that messaging is as important as supply. Lack of coordinated messaging has complicated the situation.”
Experts emphasised developing supply infrastructure, increasing storage capacity, investing in renewable energy, strengthening gas exploration, and adopting an integrated energy policy prioritising agriculture and industry.
