Bangladesh’s energy crisis worsens as US's war on Iran drags on

April 12, 2026

Bangladesh has plunged into a severe energy crisis stemming from military conflict in the Persian Gulf region involving Iran, Israel, and the United States. Since the country imports approximately 95 percent of its energy needs, disruptions to shipping through the Strait of Hormuz and force majeure declarations by liquified natural gas suppliers have left Bangladesh scrambling for emergency fuel at prices nearly 2. 5 times higher than normal.

Who is affected

Rashid Ahmed and hundreds of thousands of delivery riders across Bangladesh
175 million Bangladeshi citizens
Low-income families struggling with cooking fuel costs (minimum wage workers earning BDT 12,500/USD 101 monthly)
University students facing campus closures
Millions of workers employed in the ready-made garment industry
Textile and garment factory operators
Farmers during the Boro rice season
Motorists and commuters in major cities
Four of five state-run urea fertilizer factories (shut down)
Petrobangla (state energy company)
QatarEnergy and other LNG suppliers
JMI Group, Meghna Group of Industries, and other private companies

What action is being taken

The government is purchasing spot LNG at USD 28.28 per MMBtu from Gunvor and USD 23.08 per MMBtu from Vitol
Petrol pumps are reducing daily sales by 10 percent under government order
Gas supply to the power sector has been reduced from 870 mmcfd to 820 mmcfd
Universities are closed early with advanced Eid holidays
Four of five state-run urea fertilizer factories are shut down for at least fifteen days
Bangladesh is receiving 5,000 metric tons of fuel through cross-border pipeline from India's Numaligarh Refinery
Officials are negotiating for an additional 30,000 metric tons from Indian Oil Corporation
The government is spending BDT 5,000 crore (USD 408,500) on subsidies in March alone
Diesel is being sold at subsidized rate of BDT 100 per liter and octane at BDT 120 per liter
Petrobangla is requesting additional subsidies from the government
Meghna Group of Industries is attempting to source LPG from Vietnam, Taiwan, Malaysia, and China

Why it matters

This crisis illustrates Bangladesh's extreme vulnerability due to its 95 percent dependence on imported energy, demonstrating how geopolitically distant conflicts can devastate import-dependent economies. The situation threatens Bangladesh's economic backbone—the ready-made garment industry representing 84 percent of exports—potentially displacing millions of workers and damaging international trade relationships. For ordinary citizens, the energy shortage creates cascading hardships from transportation paralysis to food security concerns during critical agricultural seasons, while forcing the poorest families to make impossible choices between properly cooking meals and affording other necessities. The fiscal strain of emergency fuel purchases and massive subsidies (estimated at USD 11 billion for spot LNG between 2022-2024) threatens Bangladesh's foreign exchange reserves and overall economic stability, potentially triggering long-term developmental setbacks.

What's next

Officials project losing forty of the scheduled 115 LNG cargoes for 2026 due to disruptions
Power load-shedding is expected to increase across the country with potential blackouts
Agricultural experts are worried about medium-term fertilizer shortages affecting the Boro season
Companies like Meghna Group anticipate shortage concerns beginning in April
Universities face uncertainty about when normal operations will resume
The government stated "If committed supplies arrive, the pressure will ease"

Read full article from source: Global Voices