Govt mulls strategic diesel allocation for RMG units to counter load-shedding
BGMEA and BKMEA to certify factory fuel requirements to ensure rational distribution amid supply crunch
The government is considering a strategic diesel allocation plan for the ready-made garment sector based on recommendations from trade bodies to ensure factory generators remain operational during periods of load-shedding.
The move comes amid a worsening global energy crisis triggered by the Iran war, which has driven up fuel and LNG prices and disrupted supply chains. Iran's move to halt tanker traffic through the Strait of Hormuz has further tightened global supply.
According to officials and industry sources, the proposed mechanism will allow factories to receive diesel strictly in line with certified daily requirements provided by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA).
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Both organisations have already begun collecting data from member factories on generator capacity and fuel demand. In a letter issued on Sunday, the BGMEA asked its members to submit details of generator usage, capacity and diesel requirements by 2 April, while the BKMEA issued a similar request.
BGMEA President Mahmud Hasan Khan said factories rely on standby generators during power outages, which require a steady diesel supply. He noted that discussions with the government are under way to ensure equitable fuel distribution during the ongoing global crisis.
He added that, under an initial plan, diesel allocation would be based on the amount required to run generators for up to four hours a day, as extended load-shedding beyond that duration is not anticipated.
BKMEA President Mohammad Hatem said the association is gathering daily fuel demand data from its members and will issue certifications accordingly. He added that a meeting with the power and energy minister was scheduled for late yesterday to finalise the arrangement.
BKMEA Executive President Fazlee Shamim Ehsan said discussions have already taken place with the energy minister and local administrators in Narayanganj and Gazipur, with positive responses.
He expressed hope that fuel supply based on organisational recommendations would begin soon, depending on the evolving situation.
Under the proposed system, factories will be allowed to collect diesel once daily from nearby filling stations, which will supply fuel upon verification of BGMEA or BKMEA certification, sources said.
Data from the Bangladesh Petroleum Corporation indicate that the country consumes around 13,000 to 14,000 tonnes of diesel per day, with about 5% used by industrial factories. The bulk of diesel is consumed in transport, irrigation and power generation.
Bangladesh, which is heavily dependent on fuel imports from Middle Eastern countries such as Saudi Arabia and the United Arab Emirates, has not received crude oil shipments since the war started.
Imports of refined fuel and LNG – primarily sourced from countries including Qatar and Oman – have also been affected, with LNG prices nearly doubling.
Diesel remains critical for transport, agriculture, power generation and industrial operations, while LNG is widely used in electricity production and factory boilers. The ongoing global shortage has already begun to affect domestic supply, with consumers facing difficulties in obtaining fuel in line with demand, industry insiders said.
