Gas rationing goes amid protests from manufacturers

In the face of objections from manufacturers, the government has withdrawn the rationing of gas supply to all industries, including textile and readymade garment factories – the major foreign exchange earners for the country.

In a circular on Thursday, Petrobangla – the Bangladesh Oil, Gas and Mineral Corporation – said the decision will be effective from Friday, 22 April.

On 11 April, the corporation had issued a circular, asking factories to stop using gas for four hours – from 5pm to 9pm – every day till 26 April amid a crisis in Ramadan.

Engineer Ali Mohd Al-Mamun, director (Operation and Mines) for Petrobangla, told The Business Standard that they had decided to withdraw their previous decision as the supply of gas seems adequate for all sectors.

But Petrobangla's production data shows that gas supply has not improved in the last week as of 12 April. The total supply of gas was 3,120 million cubic feet (mmcfd), which dropped to 3,070 mmcf on 20 April.

However, officials at the energy and mineral resources division, said Petrobangla has withdrawn its decision following protests from the apex body of dressmakers, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

BGMEA President Faruque Hassan met with Nasrul Hamid, state minister for the Ministry of Power, Energy and Mineral Resources, at the Bangladesh Secretariat on 21 April and called upon the government to withdraw the gas rationing to industrial units in the greater interest of industries.

He called for the uninterrupted supply of natural gas to export-oriented industries, including the garments and textile sectors, so that factories can operate at full capacity.

BGMEA Vice-President Shahidullah Azim, Senior Secretary, Energy and Mineral Resources Division, Md Mahbub Hossain, Managing Director of Titas Gas Transmission and Distribution Company Limited, Engineer Md Haronur Rashid Mullah, and acting chairman of Petrobangla, AKM Benjamin Riazi, were also present at the meeting.

Meanwhile, on Wednesday, in the interest of industries, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Faruque Hassan, called upon the government to withdraw its decision to ration gas to industrial units.

"A smooth energy supply will help the apparel industry sustain its growth in the coming days, and advancement of the garment industry means more export earnings, more employment, and more development of Bangladesh as a whole," he said in a secretariat meeting with Nasrul Hamid, State Minister for the Ministry of Power, Energy and Mineral Resources.  

Faruque Hassan also called for uninterrupted supply of natural gas to export-oriented industries, including the garments and textile sectors, so that factories can operate at their full capacity.

BGMEA Vice President Shahidullah Azim, Senior Secretary to the Energy and Mineral Resources Division, Md Mahbub Hossain, Managing Director of Titas Gas Transmission & Distribution Company Limited, Engr Md Haronur Rashid Mullah, and Acting Chairman of Petrobangla, A K M Benjamin Riazi, also attended the meeting.

The BGMEA leaders apprised the State Minister of the present condition of the readymade garment industry which is recovering from the pandemic fallout.

"The commitment of Bangladeshi garment exporters to on-time shipments, even amid the Covid crisis, has boosted the confidence of global buyers. As a result, Bangladesh is receiving a greater number of work orders," the BGMEA) President said.

Faruque Hassan said the garment industry has been making crucial contributions to the socioeconomic development of Bangladesh, bringing in more than 82% of the country's total export earnings, employing millions of people, and empowering women.

On 11 April, the government decided to ration the supply of gas to all industries, including forex-earning textile and readymade garment industries, restricting supply to four hours, from 5pm to 9pm daily for 15 days, amid a crisis in Ramadan.