Fuel prices could rise if Middle East conflict continues, says Prof Tamim

Domestic fuel prices in Bangladesh may need to increase if the ongoing conflict in the Middle East continues, potentially triggering inflationary pressures, warned energy expert Professor Dr M Tamim on Saturday.

Professor Tamim made the remarks while serving as the chief guest at a shadow parliament event titled “Addressing the Energy Crisis by Strengthening Domestic Systems”, organised by Debate for Democracy at the Faculty of Development Studies (FDC) in Dhaka.

He noted that Bangladesh’s reliance on imported energy, combined with limited domestic production, has left the country vulnerable to global supply disruptions.

“Before the Middle East crisis, fuel reserves lasted only two days, yet there was no widespread panic. Today, despite reserves sufficient for 7 to 15 days, public anxiety is high,” he said.

The professor highlighted that panic buying of petrol and octane is widespread, though diesel supply poses the more critical concern.

He also pointed to misinformation about fuel stockpiles in the past as a factor undermining public confidence in official data.

Citing regional comparisons, Professor Tamim observed that fuel prices in Pakistan are nearly double those in Bangladesh, and any domestic price adjustment could add to inflation.

He warned, however, that maintaining subsidies indefinitely is not sustainable.

He further noted that Bangladesh Petroleum Corporation (BPC) has earned consistent profits exceeding Tk3,000 crore annually, accumulating around Tk30,000 crore over the past decade, but failed to maintain adequate fuel reserves for crises.

Hasan Ahmed Chowdhury Kiron, who presided over the event, criticised previous policies, including quick rental power projects and power import deals, saying they weakened national energy security.

He urged stronger monitoring to prevent market manipulation and called on the public to avoid hoarding.

The debate competition concluded with State University of Bangladesh defeating Bangladesh University of Business and Technology. Trophies, crests and certificates were presented to participants.