The New Nation - Internet Edition

A.T.M.Nurun Nabi

TThe world witnessed oil price on Thursday last recorded at 90.02 dollars a barrel supported by tight fuel stocks ahead of winter and a softening U.S. dollar. The Organisation of Petroleum Exporting Countries (OPEC) has expressed concern and vowed to check the upward trend. But that attempt may not be successful in view of the latest threat coming from the US President G. Bush that the 3rd World war could be averted provided Iran was barred from becoming a nuclear power. There is no doubt that the economically advanced countries may start stockpiling oil, diesel, octane, gas and kerosene for future. Since they are united and control a large number of oil fields across the globe, it is easy for the. But the job is hard for the developing country like Bangladesh. In case of a air strike on Iran, the price of oil will rise to minimum 100 dollars a barrel, even more than that, in the world and the price per liter in Bangladesh will have to be re-fixed at much a higher level than the present. The government has already undertaken the liability of BPC to the extent of taka 7583 crore. To this, can the government take more burden of subsidy in this sector?.

It may be said that the government allocated taka 4586 crore (development taka 4557 crore, non-development taka 29 crore) in the oil and energy sector from the national budget 2007-08. If the government does not reduce the subsidy, it will have to bear more burden of BPC.

There is no reason to deny the fact that the modern civilisation depends on energy. Bangladesh has no oil fields but has gas reserves of 8.4 TCF likely to be exhausted by 2011. And when it will be exhausted, the use of oil will increase to keep the power plants and industries on run. In that case too, the government has to stock oil right from now and has to be cautious about future to avert a dump.