Gas Crisis, Soaring Prices: Is the Government Listening?

People across the country are reeling from an acute gas crisis. As if that were not enough, they are also grappling with the relentless surge in the prices of essential commodities. Amid this severe crisis, the government has recently increased the price of a 12-kg liquefied petroleum gas (LPG) cylinder by Tk 70. The Bangladesh Energy Regulatory Commission (BERC) announced the decision in a notification. Following the hike, the retail price of a 12-kg LPG cylinder has been fixed at Tk 1,598, up from the previous price of Tk 1,528.

The gas crisis has persisted for nearly two weeks. From CNG filling stations to households and restaurants, the shortage has created widespread distress. Residents are enduring severe hardship due to the lack of gas supply in their homes. Meanwhile, hundreds of vehicles are seen lined up in long queues at CNG filling stations, forcing drivers to waste hours waiting for gas.

The gas shortage is also severely disrupting production in the country’s industrial sector. Manufacturing activities have been reduced by nearly half due to the crisis. If the situation persists, industries may lose their competitiveness in the international market and suffer substantial financial losses. 

The impact of the gas crisis has also spread to electricity generation. More than 50 per cent of the country’s power plants rely on natural gas. As a result, severe load shedding has become widespread across the country. Outside Dhaka, people are experiencing power outages lasting eight to ten hours a day, while in some areas, load shedding exceeds 12 hours. Overall, the ongoing gas crisis poses a serious threat to the national economy. Coupled with persistently high inflation, the shortage is likely to inflict significant damage on the country's overall economic performance.

It is worth noting that a fire at Excelerate Energy’s Floating LNG Terminal in Maheshkhali on July 21 caused a major disruption to the country's LNG import and supply system. As a result, the national gas grid has been receiving approximately 450 million cubic feet less gas per day. Since the damaged terminal has yet to resume full operations, international LNG suppliers have shown little interest in delivering new cargoes within the scheduled timeframe.

At present, only Summit Group’s Floating Storage and Regasification Unit (FSRU) remains operational out of the country’s two floating LNG terminals. This terminal is currently supplying around 508 million cubic feet of gas to the national grid every day.

Bangladesh’s daily gas demand currently stands at approximately 3.8 billion cubic feet. Under normal circumstances, daily supply is around 2.65 billion cubic feet. However, with one LNG terminal out of operation, supply has dropped to nearly 2.2 billion cubic feet, pushing the current gas deficit to approximately 45 per cent.

Last week, Rupantarita Prakritik Gas Company Limited (RPGCL) invited international tenders to import three spot LNG cargoes for the periods of August 10-15 and August 15-16. However, none of the enlisted international suppliers expressed interest in delivering the two cargoes scheduled for August 10-15. 

Consequently, there are growing concerns that the ongoing gas crisis could worsen further. Therefore, there appears to be little prospect of any good news regarding the crisis in the immediate future.

Meanwhile, as the country struggles with a severe gas shortage, people are also being overwhelmed by the relentless rise in the prices of essential commodities. From rice, lentils, fish, meat and eggs to vegetables, the prices of every essential commodity have soared, pushing ordinary people to the brink. Within the span of just one month, the prices of almost all essential consumer goods have increased at an alarming rate. Most vegetables are now selling for more than Tk 100 per kilogram. The price of eggplant has exceeded Tk 180 per kilogram, while green chillies have reached Tk 400 per kilogram. 

Consumers have been hit hard by this abnormal increase in the prices of daily essential commodities. Although the prices of essential goods continue to rise regularly, the incomes of ordinary people and the salaries of working men and women have not kept pace with inflation. As a result, low-income and middle-income families are struggling to make ends meet.

The people of this country primarily want two simple things: two meals a day and food security. They neither understand the complexities of political calculations nor the intricacies of bureaucratic procedures. The government must understand this public pulse, and take effective and immediate measures to address the gas crisis and bring the prices of essential commodities under control.