Bangladesh Gas Crisis Drives Surge in Fuel Oil Consumption

A gas crisis in Bangladesh has led to increased reliance on fuel oil for industries and power plants.

The crisis, which worsened after a fire accident at Excelerate Energy's floating liquefied natural gas (LNG) terminal in Maheshkhali on July 21, has resulted in a significant shortage of gas supply. The country's demand is around 3.8 billion cubic feet per day, but the current supply stands at about 2.22 billion cubic feet.

As a result, many industrial factories have increased their use of diesel and furnace oil to sustain production. According to Padma Oil's calculations, 4,892 tons of diesel were sold to industrial institutions in the first 15 days of August, up from 3,781 tons during the same period last year.

Padma Oil's Managing Director Md. Mofizur Rahman said that the demand for fuel oil from industrial factories has increased due to the gas crisis. The pressure is relatively higher in industrial belts around Dhaka, especially in Narayanganj and Gazipur.