Tackling war fallout: Govt eyes power rationing to conserve energy

The government is preparing to conserve energy and possibly introduce power cuts and rationing as global fuel supplies remain under stress due to the ongoing Middle East war.

At an emergency meeting at the secretariat yesterday, officials discussed how to maximise the use of existing energy stocks and signalled a shift toward sector-wise rationing of electricity and fuel amid a deepening global energy crisis.

The ministry later issued a set of conservation directives and warned of possible short-term disruptions in power and fuel supply, which could slightly affect electricity generation and fertiliser production, officials said.

However, the ministry stressed that it would exercise “maximum caution” to avoid public suffering during Ramadan.

The government has asked the public to avoid decorative lighting, reduce the use of private vehicles in favour of public transport and use electricity and fuel more efficiently.

Traders and law enforcement agencies have been instructed to ensure that diesel and petrol are not sold in the open market in violation of regulations. District administrations, police and the Border Guard Bangladesh have been asked to intensify efforts to prevent fuel smuggling.

Broader rationing measures could follow, said Iqbal Hassan Mahmood Tuku, the power, energy and mineral resources minister who chaired the meeting.

“Until the supply side is fixed, I have to use what I have in my hand in a prudent manner. We must use what we have sparingly. If people cooperate, it will be possible to overcome this crisis,” he told reporters after the meeting.

Tuku described the situation as part of a wider global scramble for fuel.

“When there is a crisis globally, it is not only my problem. Everyone is scrambling to secure supplies.”

He acknowledged that the supply chain for importing liquefied natural gas (LNG) has slowed significantly and that Bangladesh is receiving limited response in spot market tenders due to the war.

Diesel sales have risen sharply in border areas due to higher prices in neighbouring countries, prompting rationing at fuel pumps in those regions after discussions with security agencies.

While there has been no load-shedding during sehri and iftar so far, Tuku indicated that power cuts may become unavoidable if the crisis persists.

“If consumption is controlled, we will be able to run March properly. If committed supplies arrive, the pressure will ease. In fact, the crisis may continue until the Eid holidays. If we can manage demand, it will gradually fall,” he added.

Officials said the situation would remain “tolerable” but acknowledged that austerity measures are now central to the government’s strategy.

Currently, the Bangladesh Power Development Board (PDB) supplies between 12,000 megawatts (MW) and 13,000 MW electricity.

At least 30 out of the total 143 power plants have not been producing electricity due to either gas or liquid fuel shortage.

The government will reduce gas supply to the power plants and fertiliser industries by up to 200 million cubic feet a day, which may reduce electricity production further.

Gas supply has been reduced from yesterday, according to officials.

As a result, loadshedding has started in parts of the country, though it was below 50MW at the time of filing the report at 9:00pm.

The ministry said it is trying to secure fuel from multiple sources and has taken “all possible measures” to minimise the adverse impact of global developments.

However, it urged citizens to remain patient and cooperate by curbing unnecessary consumption.

Petrobangla chairman Md Erfanul Haque told reporters at his office that they had called international tenders for spot LNG purchase for the last two days, but nobody bid.

There might be two reasons for not getting any bids: all of the suppliers might be sourcing LNG from Qatar, which has now halted production, or the suppliers are waiting for the price to hike further, he said.

Already, the spot market price has hit $25 per per one million British Thermal Units (MMBtu) from $10 MMbtu.

According to Petrobangla, Bangladesh is scheduled to receive six LNG cargoes via the Strait of Hormuz for the month of March. Of those, four have been ensured. Two cargoes, which were supposed to anchor on 15th and 18th March, remain uncertain.

“Suppliers have not formally cancelled them, but confirmation is pending,” Haque said.

Earlier in the day, Tuku sought support from the US in a meeting with Paul Kapur, the US assistant secretary of state for South and Central Asian Affairs.

Bangladesh has requested both immediate crisis-period support and longer-term cooperation in the energy sector.

“Commitments that were in place are not being honoured. Supplies that were supposed to arrive have stopped.”

Kapur said he would discuss the matter with senior officials in Washington DC and inform Dhaka of the outcome, according to Tuku.