The price of fuel oil is rising sharply in the global market. With the closure of the Strait of Hormuz and growing uncertainty over oil supplies through Bab el-Mandeb in the Red Sea, oil prices are now steadily moving upward.
As a result, inflation has increased worldwide, while the interest rate on U.S. bonds has reached its highest level since the global economic recession of 2008.
According to a report in Ittefaq, amid renewed war rhetoric and rising tensions in the Middle East, the price of oil has already surpassed $108 per barrel. Data from OilPrice.com show that the price of Brent crude has risen by 3.88 percent to $108.74 per barrel.
It is worth noting that the Houthis have once again attacked Saudi Arabia's oil infrastructure. In addition, Iran has attacked vessels in the Gulf. These incidents have heightened concern and anxiety over oil supplies in the global market.
Following the Houthi attacks, the shutdown of an oil pipeline in Saudi Arabia caused international oil prices to rise by more than 3 percent last Monday. Under these circumstances, the costs of oil-importing countries, including Bangladesh, will increase.
When fuel oil prices rise, the cost of almost everything—from electricity to transportation—will increase abnormally. Instability will emerge in the market for essential commodities.
This will push up the inflation rate and make life increasingly difficult for ordinary people. Another Ittefaq report has already stated that the government is purchasing LNG at more than three times the usual price.
In other words, because of instability in the Middle East, Bangladesh and many other developing countries have found themselves in a difficult situation.
Therefore, it is essential to undertake multiple initiatives to overcome this problem. On the one hand, the government must ensure that fuel supply lines remain normal.
On the other hand, it must adopt energy-saving policies wherever possible. In times of crisis, everyone must be made aware that no form of energy, including electricity, should be wasted.
For this purpose, special directives may be issued to both public and private institutions. At the same time, efforts should be made to ensure as much equality and fairness as possible in the distribution of fuel in both urban and rural areas so that public dissatisfaction can be kept under control.
The shock of soaring oil prices in the global market has already sparked public discontent in various countries. At present, widespread protests have begun in Syria in the Middle East.
The country's Ministry of Energy has increased the prices of petrol and diesel by 28 percent and 40 percent, respectively. Protests against the fuel price increases have reportedly taken place in the Syrian cities of Hama, Khan Shaykhun, and Maarat al-Nu'man. People in areas including the capital Damascus, as well as Idlib, Aleppo, Deir ez-Zor, and Hasakah, have also taken to the streets.
Besides Syria, transport workers and ordinary citizens in some European countries, including Ireland, have staged protests against increased fuel taxes and prices. Even in Asian countries such as Indonesia and African countries such as Comoros, public discontent has resurfaced as the sharp impact of rising fuel prices has compounded the increasing cost of living.
These protests are indicative of a deepening economic crisis around the world. In such circumstances, the Bangladesh government should exercise caution and take immediate as well as long-term strategic measures to address the energy crisis.
To tackle the crisis outlined above, Bangladesh needs to urgently conclude bilateral agreements with alternative fuel-supplying countries and renegotiate long-term LNG contracts while maintaining continuity of supply.
To ensure uninterrupted electricity supplies to industries and factories, wasteful lighting and unnecessary electricity consumption must be strictly controlled. In addition, alongside austerity measures in both the public and private sectors, drives should be conducted where necessary to disconnect illegal gas and fuel connections.
Furthermore, dependence on imported fossil fuels should be reduced by increasing renewable energy generation, while gas exploration activities in Bangladesh's onshore and offshore areas should be intensified.
The government must establish clear priorities for emergencies. Comprehensive measures must be taken to keep the daily lives of ordinary people as normal as possible.
