Strict lockdown cuts gas, fuel consumption
Bangladesh’s gas and fuel consumption dropped 26% and 25% respectively in July year on year
The ongoing stricter lockdown, introduced to curb the spread of Covid-19 and its Delta variant, has cut down energy and fuel consumption in Bangladesh.
According to Petrobangla's report, the country's gas consumption dropped 26% in July this year compared to the same period last year. In the same month, fuel oil consumption also fell 25% year on year, say Bangladesh Petroleum Corporation sources.
Petrobangla officials say gas consumption dropped due to the shutdown of readymade garment (RMG) and other factories last month as part of the restrictions. Fuel sales also decreased as passenger vehicles, trains, planes and water transport services had stopped.
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Fuel marketing and distributing companies, however, told The Business Standard that the demand for oil is a bit higher this time than the lockdown period last year.
"Current post-lockdown demand is slightly lower than it was for the comparable timeframe in 2020, but the demand during this year's lockdown itself is still higher than in the lockdown last year," Md Masudur Rahman, managing director of the state-owned fuel distributor Padma Oil Company Ltd, clarified.
Due to such slow demand for energy, the import of liquefied natural gas (LNG) and refined fuel such as diesel, furnace oil, petrol, octane and jet fuel has also slowed down, sources said.
Bangladesh's LNG imports reached 0.44 million tonnes in June, down 30% from the previous month, and 2% lower than last year, says a Bloomberg report. Domestic gas supply met 78% of domestic demand, while LNG imports provided the remaining supply.
At the same time, Petrobangla also reduced gas production at local gas fields following the decline in consumption. The drop in domestic production reduced supply to industries, residences and the transport sector, with lower consumption.
The average demand for gas in Bangladesh was around 2,300mmcf this July, a drop from 3,100mmcf in the same period last year, says the Petrobangla report.
The sale of fuel oil reached 4.23 lakh tonnes last July, a decrease of 25% when compared to the same month last year, Bangladesh Petroleum Corporation officials said.
To stem the tide of Covid-19 infections, the government imposed a stricter lockdown across the country on 1 July. The lockdown was then relaxed for nine days for Eid-ul-Adha holidays.
The restrictions resumed on 23 July, and the government barred industries, factories, government and non-government organisations, and all kinds of offices, from operating until 5 August. This move contributed to the decrease in consumption of fuel oil and gas.
Despite taking a firm stance on enforcing Covid-19 restrictions, the government later allowed industry and factory owners to resume operations on 1 August.
