North India Statesman
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Dhaka. The impact of the ongoing destructive war between America, Israel and Iran has now crossed the borders of the Middle East and reached South Asia. A severe fuel crisis has arisen in Bangladesh amid threats of disruption in oil supply from Gulf countries and closure of the Strait of Hormuz. The situation is so uncontrollable that miles long queues of vehicles have formed at petrol pumps in many cities including Dhaka and people are forced to stay awake for every drop of oil.
Panic buying and ‘rationing system’ implemented
There is an atmosphere of chaos in the global oil market since the attacks on Iran on 28 February. Due to fear of running out of fuel in Bangladesh, people have started ‘panic buying’ (excessive buying in panic).
Rationing applied: According to the report of the Associated Press, in view of the crisis, the Bangladesh government has implemented a rationing system on the sale of oil. Under this, now only a fixed and limited quantity of fuel is being given to the vehicles.
Huge anger among the public: Despite standing in queues all night long, fuel at many pumps has been completely exhausted. The general public is also angry that oil is being given to government and VIP vehicles, but ordinary car owners and drivers are being asked to wait till 2 pm.
Why did Bangladesh become the biggest victim of this crisis?
This energy crisis has become a big litmus test for the recently formed government of Dhaka. The main reasons behind this are as follows:
Heavy Dependence on Imports: Bangladesh imports 95% of its fuel oil and 70% of its gas requirement from abroad (mainly Gulf countries). Tension in the Middle East directly means cutting off Bangladesh’s lifeline.
Fertilizer factories closed: Due to acute shortage of gas, 5 out of 6 major fertilizer factories of the country have been completely closed till March 18. This will have a direct impact on agriculture and farmers in the future.
Threat looms on economy and garment industry
One-fifth of the world’s seaborne oil trade passes through the Strait of Hormuz. Iran’s warning to shut it down has set global oil prices on fire.
Pressure on foreign exchange reserves: Due to rising oil prices, Bangladesh’s import bill is increasing rapidly, which has put huge pressure on the country’s foreign exchange reserves.
Loss to garment sector: If this interruption in energy supply continues for a long time, the factories of this country, which has the world’s second largest garment industry, may come to a standstill. Due to this, not only exports will fall, but lakhs of people can also lose their jobs.
