Bangladesh Faces Energy Crisis: Bangladesh is grappling with an energy crisis as escalating military tensions in the Middle East threaten the country’s industrial and energy sectors. The uncertainty surrounding fuel supplies could disrupt industrial production, prompting the government to introduce energy rationing and seek alternative fuel sources.
Energy sector analysts warn that prolonged tensions could extend beyond global energy markets, impacting industrial activities in Bangladesh. A reduction in gas supply for electricity generation or industrial use could severely disrupt production operations, affecting the country’s export sectors.
Mahmud Hasan Khan, president of the Bangladesh Garment Manufacturers and Exporters Association, indicated that while the Middle East conflict might not significantly impact raw material imports for the garment industry, a fuel shortage could severely disrupt production. He suggested that the government might consider reducing duties and taxes on fuel imports if prices rise.
To mitigate the crisis, the government has urged citizens to conserve energy by reducing unnecessary travel, using public transport, and minimizing gas wastage at home. Government and commercial institutions have been instructed to ensure efficient energy use.
The ongoing instability in the Middle East and Red Sea regions has also affected Bangladesh’s ready-made garment exports, with shipments rerouted around Africa, increasing shipping times and costs. Md Mohiuddin Rubel, a former director of the BGMEA, noted that this has become the norm since late 2023, impacting production planning and cost structures.
To address the energy shortfall, Bangladesh is exploring fuel imports from alternative sources such as Singapore, Malaysia, and Indonesia. However, the situation remains precarious, and continued disruptions in the Strait of Hormuz could further exacerbate the crisis.
Published in SouthAsianDesk, March 8, 2026
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