{"id":1384,"date":"2026-04-13T07:55:43","date_gmt":"2026-04-13T07:55:43","guid":{"rendered":"https:\/\/the-secularist.com\/?p=1384"},"modified":"2026-04-13T10:03:32","modified_gmt":"2026-04-13T10:03:32","slug":"bangladeshs-energy-crisis-worsens-as-uss-war-on-iran-drags-on","status":"publish","type":"post","link":"https:\/\/the-secularist.com\/index.php\/2026\/04\/13\/bangladeshs-energy-crisis-worsens-as-uss-war-on-iran-drags-on\/","title":{"rendered":"Bangladesh\u2019s energy crisis worsens as US’s war on Iran drags on"},"content":{"rendered":"\n

This story<\/a> by Zulker Naeen<\/a> originally appeared on Global Voices<\/a> on 12 April 2026.<\/em><\/p>\n\n\n\n

Rashid Ahmed waited two hours at a fuel station in Dhaka\u2019s Mirpur district on March 10, watching the line of motorcycles stretch into the next block as the pump operator turned away customer after customer. The forty-two-year-old delivery rider had visited three stations since dawn, each time finding<\/a> either empty tanks or queues too long to wait through before his first delivery deadline. His motorcycle sat idle while his family\u2019s income evaporated with each passing hour.<\/p>\n\n\n\n

Ahmed\u2019s frustration mirrors the experience of hundreds of thousands across Bangladesh as government-imposed rationing<\/a> collides with daily survival. The rationing emerged from a crisis that began thousands of kilometers away in the Persian Gulf.<\/p>\n\n\n\n

During mid March, the government withdrew<\/a> the temporary rationing system for fuel sales; however, shortages, long queues, and irregularities at most filling stations made it difficult for vehicles to obtain fuel.<\/p>\n\n\n\n

As tensions between Iran, Israel, and the United States escalated into open warfare, Bangladesh found<\/a> itself plunged into an energy emergency despite the geographic distance. The country of 175 million people imports<\/a> roughly 95 percent of its energy, making it almost entirely dependent on global fuel markets.<\/p>\n\n\n\n

When the Strait of Hormuz became a battleground<\/a>, the world\u2019s oil supplies dipped, as the narrow waterway is the gateway for nearly a third of the world\u2019s seaborne oil. Bangladesh felt the squeeze immediately.<\/p>\n\n\n\n

The cascade begins: Supply lines cut<\/strong><\/h2>\n\n\n\n

The crisis hit with devastating speed in early March.<\/p>\n\n\n\n

QatarEnergy<\/a>, one of Bangladesh\u2019s three long-term liquified natural gas (LNG) suppliers, suspended<\/a> deliveries, invoking force majeure<\/a><\/em>, after Iranian attacks on energy infrastructure disrupted production. Qatar accounts<\/a> for 20 percent of global LNG supply. Within days, the other two suppliers followed<\/a> suit, cutting off Bangladesh from all contracted deliveries.<\/p>\n\n\n\n

Bangladesh had been purchasing spot LNG cargoes at approximately ten dollars per million British thermal units in January. By mid-March, those prices had skyrocketed to<\/a> USD 28.28 per MMBtu (million metric British thermal units) for emergency purchases.<\/p>\n\n\n\n

\u201cWe are buying spot LNG at an exorbitant price, which is almost 2.5 times higher than the price of four days ago,\u201d Energy Secretary Saiful Islam told<\/a> reporters.<\/p>\n\n\n\n

This price explosion created a vicious cycle. When Petrobangla floated an initial tender for spot LNG on March 1, it received zero bids<\/a>. Traders considered Bangladesh\u2019s market too volatile and risky. Only after offering even higher prices did the country secure cargo from Gunvor<\/a> at USD 28.28 MMBtu and Vitol<\/a> at USD 23.08 per MMBtu.<\/p>\n\n\n\n

\u201cWe are now looking for alternatives from the spot market to fill the window left vacant by the three suppliers,\u201d Petrobangla Chairman Md Arfanul Hoque acknowledged<\/a>.<\/p>\n\n\n\n

Bangladesh was scheduled to receive 115 LNG cargoes in 2026. Officials projected<\/a> losing forty of them due to disrutptions in Western Asia.<\/p>\n\n\n\n

Who gets the gas?<\/strong><\/h2>\n\n\n\n

Power generation and household consumption took precedence over industrial uses. This meant four of five<\/a> state-run urea fertilizer factories had to shut down for at least fifteen days. Only the Shahjalal Fertilizer Company<\/a> continued operating, along with one private facility.<\/p>\n\n\n\n

Bangladesh was in the middle of the Boro season<\/a>, when rice paddies require<\/a> consistent irrigation and fertilization. Government officials insisted<\/a> there was no immediate crisis due to existing stocks. Farmers and agricultural experts worried about medium-term shortages.<\/p>\n\n\n\n

Meanwhile, gas supply to the power sector dropped from<\/a> 870 million cubic feet per day (mmcfd) to 820 mmcfd. Officials warned this reduction would likely increase power load-shedding across the country and could lead to blackouts.<\/p>\n\n\n\n

\u201cUntil the supply side is fixed, I have to use what I have in my hand in a prudent manner,\u201d Power and Energy Minister Iqbal Hassan Mahmood Tuku told<\/a> reporters. \u201cWe must use what we have sparingly. If people cooperate, it will be possible to overcome this crisis.\u201d<\/p>\n\n\n\n

Universities closed, fuel rationed<\/strong><\/h2>\n\n\n\n

On March 8, authorities announced<\/a> that all universities would close early, advancing Eid holidays to reduce electricity consumption.<\/p>\n\n\n\n

University campuses consume large amounts of power for dormitories, classrooms, laboratories, and air conditioning. Shutting them down offered<\/a> immediate relief to the strained power grid. Students faced uncertainty about when normal operations would resume.<\/p>\n\n\n\n

\u201cWe are doing everything we can to reduce consumption and ensure stability in power, fuel, and import supplies,\u201d a senior official from the Ministry of Power, Energy, and Mineral Resources explained<\/a>.<\/p>\n\n\n\n

Simultaneously, the government ordered petrol pumps to reduce daily sales<\/a> by 10 percent to preserve national fuel reserves. This rationing triggered panic across major cities. Long queues<\/a> formed at fuel stations as motorists rushed to fill their tanks.<\/p>\n\n\n\n

Drivers reported waiting hours<\/a> to purchase fuel. Some stations ran dry by midday.<\/p>\n\n\n\n

The industrial toll<\/strong><\/h2>\n\n\n\n

The ready-made garment industry accounts for 84 percent<\/a> of Bangladesh\u2019s exports and employs millions of workers.<\/p>\n\n\n\n

When power cuts doubled to<\/a> as much as five hours per day, factories faced impossible choices. Industry leaders described a nightmare scenario unfolding since the conflict began in late February. Running diesel generators during extended outages dramatically increased operating costs.<\/p>\n\n\n\n

In recent months, many textile and garment factories operated<\/a> at only 40\u201350 percent capacity. These production losses threatened export orders.<\/p>\n\n\n\n

By early March, diesel reserves had fallen<\/a> to just nine days of supply, measured at 115,473 tons as of March 4.<\/p>\n\n\n\n

The government scrambled to secure emergency shipments. Bangladesh received<\/a> 5,000 metric tons through a cross-border pipeline from India\u2019s Numaligarh Refinery. Officials were negotiating<\/a> for an additional 30,000 metric tons from the Indian Oil Corporation.<\/p>\n\n\n\n

Household struggles<\/strong><\/h2>\n\n\n\n

For ordinary Bangladeshi families, the energy crisis manifested most painfully in rising cooking fuel costs.<\/p>\n\n\n\n

The price of a 12.5 kg liquefied petrolium gas (LPG) cylinder, which most households use to operate stoves and burners, surged from<\/a> Bangladeshi Taka (BDT) 900 to 1,500 (USD 7.3 to 12.2), adding between BTD 500\u2013800 (USD 4\u20136.5) to monthly household expenses. The minimum wage in Bangladesh is BDT 12,500 per month (approximately USD 101). For low-income families already struggling with inflation, this increase forced painful adjustments. Some families began undercooking meals<\/a> to conserve gas. Others reverted to traditional fuels like wood and dung.<\/p>\n\n\n\n

\u201cThe Middle East war has made LPG imports very difficult,\u201d Abdur Razzaq, Managing Director of JMI Group<\/a>, explained. \u201cFreight costs are rising, shipping routes are uncertain, and traders are becoming cautious.\u201d<\/p>\n\n\n\n

Transportation costs for LPG jumped to<\/a> USD 275 per ton, compared to the Bangladesh Energy Regulatory Commission\u2019s calculation of USD 120 per ton.<\/p>\n\n\n\n

\u201cThere was no risk of a shortage until March, considering the LPG already imported by the private sector,\u201d Mostafa Kamal, Chairman of Meghna Group<\/a> of Industries, stated. \u201cOur concern began in April.\u201d<\/p>\n\n\n\n

His company was attempting to source<\/a> LPG from Vietnam, Taiwan, Malaysia, and China as alternatives to Middle Eastern suppliers.<\/p>\n\n\n\n

A fiscal time bomb: The cost of crisis<\/strong><\/h2>\n\n\n\n

Analysts estimated<\/a> that spot LNG purchases between 2022 and 2024 could cost USD 11 billion. This enormous outlay<\/a> strained foreign exchange reserves and forced difficult trade-offs across government budgets.<\/p>\n\n\n\n

\u201cIf the disruption drags on, we\u2019ll have to lean more on costly spot LNG, which will add to our import burden and tighten supplies for power and industry,\u201d an energy ministry official told<\/a> Reuters, speaking anonymously.<\/p>\n\n\n\n

Each month of elevated prices deepens Bangladesh\u2019s vulnerability.<\/p>\n\n\n\n

Petrobangla<\/a> requested additional subsidies<\/a> from the government to cover the gap between international prices and domestic retail rates. The government\u2019s own fiscal position remained tight, with limited room for increased energy subsidies.<\/p>\n\n\n\n

\u201cThere is no fuel shortage at this moment. In fact, we have increased fuel supply compared to last year,\u201d Minister Tuku assured<\/a> recently. However, in early March, he addressed<\/a> the issue: \u201cIf consumption is controlled, we will be able to run March properly. If committed supplies arrive, the pressure will ease.\u201d<\/p>\n\n\n\n

Domestic fuel prices remained<\/a> unchanged for the third consecutive month by absorbing rising import costs through heavy subsidies.<\/p>\n\n\n\n

BDT 5,000 crore (about USD 407.4 million) was spent on subsidies in March alone<\/a>, adding to the strain on the budget and further widening the gap with international market prices.<\/p>\n\n\n\n

Diesel is being sold under subsidy at BDT 100 (USD 0.82) per liter, while prices of octane remain at BDT 120 (USD 0.98) per litre, while the market price remains<\/a> at BDT 180 (USD 1.61) and BDT 150.72 (USD 1.22) respectively.<\/p>\n\n\n\n

This article is republished from Global Voices<\/a> under a Creative Commons license. Read the original article<\/a>.<\/em><\/p>\n\n\n\n

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Guest Contributor<\/a><\/a><\/a><\/a><\/a><\/a><\/a><\/p>\n\n\n\n


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