Bangladesh may be forced to raise fuel prices if the ongoing Middle East conflict becomes prolonged, as continuing subsidies would be fiscally unsustainable, energy expert Professor Dr M Tamim has warned.
Speaking at a shadow parliament organised by Debate for Democracy in Dhaka on Saturday, he said the government cannot afford to maintain fuel subsidies indefinitely.
However, he cautioned that any upward price adjustment could intensify inflationary pressures across the economy.
Dr Tamim criticised past policy choices that deepened reliance on imported fuel without strengthening domestic supply systems. “This has left Bangladesh highly exposed to global disruptions, particularly during geopolitical crises.”
He noted that before the Middle East tensions escalated, the country had fuel reserves for just two days. Although current reserves stand between 7 and 15 days, he said public anxiety has grown disproportionately.
“Panic buying of petrol and octane is making the situation worse,” he said, adding that diesel—rather than petrol—poses the greater supply risk.
The former energy adviser also pointed to declining public trust, blaming past inconsistencies and misleading information about fuel stocks and supply for fuelling uncertainty.
Drawing regional comparisons, Dr Tamim said fuel prices in Pakistan are nearly double those in Bangladesh.
While price adjustments at home could stoke inflation, he stressed that they may become inevitable if the conflict persists.
He also questioned the financial preparedness of Bangladesh Petroleum Corporation, noting it had generated at least Tk 3,000 crore in annual profits in recent years—amounting to roughly Tk 30,000 crore over a decade.
“These funds were not preserved for crisis management, which has made the current situation more difficult,” he said.
Chairing the session, Hasan Ahmed Chowdhury Kiron said policy missteps and weak governance have left the country’s energy security vulnerable, with ordinary citizens now bearing the cost.
In the debate, students from State University of Bangladesh defeated participants from Bangladesh University of Business and Technology.