Bangladesh is experiencing a severe energy shortage that has disrupted daily life across the country, particularly in the capital Dhaka, a city of nearly 40 million people. The crisis has forced residents to adapt to limited utilities, with some cooking during midnight hours when gas pressure is sufficient and enduring extended power outages. City officials have implemented rationing measures including early closures for commercial establishments at 8pm and mandatory shutdown of illuminated billboards by 7pm, with exemptions granted only for essential services.
The root cause of the shortage stems from geopolitical disruptions in global energy markets. The US conflict with Iran has severely impacted Bangladesh’s liquid natural gas imports, with shipments declining by 83 percent between July and August. Additionally, a fire that struck one of the country’s two floating LNG terminals on 21 July further constrained supply. These interruptions are particularly significant because Bangladesh produces minimal energy domestically and relies on Middle Eastern sources for approximately half its energy supply. Daily demand stands at roughly 107-113 million cubic metres, far exceeding available supply of approximately 74 million cubic metres.
The newly elected Bangladesh Nationalist Party government, which assumed office in February following the removal of the previous administration, has struggled to manage the crisis despite implementing emergency conservation measures. Rural areas have been hit especially hard, with some regions experiencing power cuts lasting up to 16 hours daily. Load-shedding has exceeded 3,000MW during peak shortage periods according to government records.
The energy deficit has cascading effects throughout the economy. Energy-intensive sectors including textiles, manufacturing, transport and agriculture have been forced to operate at significantly reduced capacity, with many businesses relying on costly backup generators or suspending operations entirely. Food security has deteriorated, with projections indicating that approximately 3 million additional people will face food insecurity by year’s end. Citizens report rising costs for essential goods and reduced purchasing power, while security concerns have emerged as darkness covers previously lit urban areas during evening hours.
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