Rising oil price on the international markets has become a matter of concern not only for developing countries like Bangladesh, but also for the developed nations. Still no one knows whether the price will mark further rise. There is also no possibility that the demand of oils will decrease in the coming years. Given the grim picture prevailing in the country’s energy sector with no significant investment in last 6/7 years, Bangladesh should go ahead with the plan to generate 6,100 MW gas-based electricity by the year 2012. But Petrobangla categorically informed the BPDB that it would be able to continue gas supply for only 2,900 MW. Supply of gas for additional electricity generation will not be possible. So the country must explore the possibility of other options like renewables, hydropower and solar power to reduce the dependence on fuel oil. Moreover, there should be a well-thought-out future plan for Bangladesh regarding the energy resources, particularly about imported fuel oils. Considering the turmoil in the world oil market and Bangladesh’s less prospect in getting gas and hydropower, experts say Bangladesh should concentrate more on gas and coal.

Synopsis

Oil prices continue to rise on the international markets. On the other hand, Bangladesh is experiencing gas crisis. The government is yet to finalize the coal projects although it had decided to go for coal-based power plants. If the country continues to spend such a huge amount of foreign exchange for importing fuel oils, the economy will experience a setback. If energy is not ensured, the economic growth could not be achieved. The cost of electricity to be generated from imported energy will also be very costly.