The crude oil prices now look set to break $80 per barrel very soon. Some oil experts and analysts are predicting that the oil prices may reach up to $100 per barrel in the near future if the conflicts in Palestine and Lebanon continue and the nuclear issues of Iran and North Korea are not resolved soon.

Such abnormal high prices of crude oil will hit the Bangladesh economy drastically. The current oil import bill of Bangladesh is over $1.5 billion. With further increase of crude oil prices, the oil import bill will stand at over $2 billion.

Global increase of oil prices have already affected all sectors of the economy and prices of products including essential items have registered higher levels. Further rise of oil prices will affect all consumer items adversely: Bangladesh economy cannot sustain the impact of all time high prices of crude oil and refined petroleum products.

The government of Bangladesh should immediately take the following steps to arrest the tremendous shock and impact of record high prices of oil:

1. Immediately increasing the domestic retail prices of petroleum products in keeping with the import prices.

2. Maximize use of CNG by converting existing vehicles.

3. Compulsory conversion of all gasoline engines into CNG fuelling system.

4. Conversion of diesel-run vehicles into CNG in phases.

5. Import of CNG run buses, trucks and cars on emergency basis by public and private sectors. Soft term loans should be given to the importers and duty relaxation should also be given to the CNG vehicle importers.

6. Railways and riverine transports should be run with CNG with necessary conversion in dual fuel.

7. Rationing system for petroleum products should be introduced immediately as in war-like situation.

8. Steps should be taken for manufacturing bio-fuels.

9. Bio-gas plants should be installed for producing cooking gas and limited electricity wherever possible.

10. Markets and shopping malls should be closed after 6:30 pm.

11. Government should immediately approach bilateral and multilateral donor countries/agencies to provide grant for financing petroleum products purchase, otherwise all the development efforts will be stalled.

12. Encourage CNG conversion of vehicles. Government should consider giving soft loans to CNG conversion workshops to import CNG kits and CNG cylinders.

13. CNG refueling stations along the high ways of Dhaka-Chittagong, Dhaka-Sylhet and Dhaka-Bogra should be installed by RPGCL or private parties. In this case preferential treatment should be given for allotment of land and/or acquisition of land.

14. Super gas network should be installed along the streets and highways in and around Dhaka, Chittagong and Sylhet cities to supply natural gas at required pressure to CNG refueling stations. Most of the pipelines were built a long time back and lack proper pressure for supply of gas to CNG refueling stations.

15. All the production wells in all the producing fields, bottom hole surveys and pressure tests should be carried out in phases and corrective measures should be taken to ensure uninterrupted supply of natural gas.

16. Bangladesh imports every year about Tk 20,000 crores worth of petroleum products. At least Tk 2,000 crores should be spent every year on exploration to find new fields of oil and gas.

17. Deep drilling by crossing the high pressure zones should be carried out to find more gas and oil. Titas field and Kailashtilla fields are considered more prospective for finding oil by deep drilling.

18. RPGCL should be allowed to act as regulatory body for CNG conversions and uses. RPGCL's certification should be mandatory for all conversion of motorized vehicles.

The writer is former Chairman, Bangladesh Petroleum Corporation and former Managing Director, Titas Gas.