Fuel Shortages and Power Cuts Disrupt Life and Economy in Bangladesh
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Fuel supply disruptions linked to global tensions are causing daily hardships for families and businesses in Bangladesh. Ride-share drivers face lost income, garment factories are running on costly generators, and the government is spending billions more on subsidies. Economic growth forecasts for the country and the wider region are being revised downward as a result.
Facts First
- Fuel shortages force ride-share drivers like Tariqul Islam to sit idle one day for every two days of work.
- Garment factory output has dropped 30–40% and shipments have fallen 5–13% in recent months, according to industry leaders.
- The Bangladesh government is projected to spend an extra $1.07 billion on LNG subsidies this quarter if global prices stay high.
- The Asian Development Bank (ADB) has cut growth forecasts for developing Asia, citing climbing oil prices.
- The World Bank expects Bangladesh's growth to slow to 3.9% in the fiscal year ending June 2026.
What Happened
Fuel supply disruptions linked to global tensions are causing fuel shortages in Bangladesh, a country heavily dependent on imports. This has forced the government to ration fuel, divert gas to power plants from fertilizer factories, and restrict shopping mall hours. For individuals like ride-share driver Tariqul Islam, this means he can only buy enough fuel for two days of work, forcing him to sit idle every third day. In the industrial sector, garment factories are experiencing frequent power cuts and are running generators for at least four hours a day, raising business costs significantly.
Why this Matters to You
If you live in Bangladesh, you are likely experiencing longer power cuts and higher costs for goods and services. Your commute or work, especially if you rely on transportation like ride-sharing, may be less reliable and less profitable. For the millions employed in the garment sector, job security could become more uncertain as factory output and shipments decline. The government's increased spending on fuel subsidies may affect public finances and could lead to higher taxes or reduced spending on other services in the future.
What's Next
The government is seeking fuel supplies from India to alleviate the shortages. Global oil prices and the stability of key trade routes like the Strait of Hormuz will likely continue to influence Bangladesh's economy. Economic growth in Bangladesh and the wider Asia-Pacific region is expected to remain subdued, with inflation projected to rise.