Energy crisis hits industrial sector, production drops 20 percent

❐ Special Correspondent

The ongoing war in the Middle East has disrupted fuel supplies, causing severe disruptions to industries in the country. The oil shortage has caused major disruptions in both production and product supply.

The rapid decline in fuel oil reserves across the country has created uncertainty in industrial production and transportation systems.

Traders say that due to the lack of fuel as per demand, not all trucks are being operated, which is directly affecting the supply chain. At the same time, production has decreased by an average of 15 to 20 percent due to the lack of sufficient fuel to run generators due to the power shortage.

Pran Group Managing Director Ilias Mridha said, “There would be no problem if the amount of oil was allocated according to the amount used each month. But unplanned rationing will harm the industrial sector and the overall economy.”

Meanwhile, the export-oriented garment sector is also beginning to be affected by the crisis. BGMEA is already preparing a list to assess oil demand. Masud Kabir, chairman of the organization’s public relations and publicity committee, said that if the current situation continues, there is a risk of a major collapse in exports.

Analysts say that if the crisis is not addressed quickly, there will be major pressure on the market system and the export sector. They have suggested introducing emergency fuel rationing and prioritizing the industrial and service sectors.

“To make current and potential energy supplies usable in the long term, we need to ensure energy supply on a priority basis to sectors important to the economy,” said CPD Research Director Khandaker Golam Moazzem.

According to government sources, only 10 ships were supposed to receive diesel in March, but so far only 10 have arrived. Efforts are being made to import fuel from alternative sources to manage the situation.