Foreign Minister AK Abdul Momen has warned that global energy prices will increase further if Russia's military offensive in Ukraine continues and this, in turn, could drive up the cost of transportation and agricultural production in Bangladesh.
“Bangladesh currently imports 5.0 million tonnes of diesel, 1.3 million tonnes of crude oil, 200,000 tonnes of furnace oil and 120,000 tonnes of octane every year,” Momen told parliament on Wednesday.
“The country is now incurring a loss of over $150 million daily from fuel sales in the domestic market,” he added.
The minister was responding to a question from ruling party MP Shafiul Islam, reports Reuters.
Russia’s invasion of Ukraine fuelled a spike in oil prices worldwide and stoked fears of major disruptions to the global energy supply.
Sanctions imposed on Russia over the invasion had disrupted oil supplies and driven oil prices to nearly $140 a barrel, its highest in about 14 years.
Countries like Bangladesh, which are heavily reliant on imports, are feeling the heat of the high fuel prices in the international market.
Bangladesh Petroleum Corporation, or BPC, has been incurring heavy losses after the government decided to subsidise fuel to offset a price hike. Officials at the state-run agency had previously said that its losses amounted to Tk 130 million every day just from the sale of diesel.
The conflict could also affect the supply of wheat even though Bangladesh does not depend on Russia and Ukraine for the commodity, according to Momen.
"The cost of transportation and insurance is also expected to rise if the war between the countries continues,” he said.
The minister also urged Bangladeshi companies to be careful about doing business with Russia amid concerns over the banning of several Russian banks from the SWIFT international payments system.
“Any transaction with Russian banks may get stuck due to the ban and the money may not be recoverable in the future.”
“Discussions are underway between Bangladesh and Russia to find an alternative way to finance and repay debts on ongoing projects,” Momen added.