Written by The Banking Post
Bangladesh could face an additional Tk 610 billion annual burden due to the ongoing global energy shock, as rising fuel prices threaten to strain the economy, business leaders have warned.
Speaking at a roundtable, Taskeen Ahmed, president of the Dhaka Chamber of Commerce and Industry, said the country’s heavy dependence on imported energy has left it highly exposed to global price volatility.
“If oil prices remain above $120 per barrel, Bangladesh may incur an extra $4–5 billion in costs, along with higher subsidies for LNG and fuel imports,” he said.
The impact is already visible across key macroeconomic indicators. Rising fuel costs are fuelling inflation, widening the fiscal deficit, and putting pressure on foreign exchange reserves. Every $10 increase in oil prices could add about $1 billion to annual expenditure, while accumulated losses of the Bangladesh Petroleum Corporation have surpassed Tk 45,000 crore.
The energy crunch is also disrupting industrial activity. Gas supply to industries has dropped by around 40 per cent, while electricity shortages exceed 3,000 megawatts, affecting manufacturing output, exports, and supply chains.
Energy-intensive sectors—including garments, cement, steel, and pharmaceuticals—are facing sharp cost increases. Freight charges have surged by 20–40 per cent, with additional container costs ranging from $500 to $4,000, further pushing up export prices.
The strain extends beyond industry. Small and medium enterprises are struggling with energy shortages, while rural areas are experiencing prolonged load-shedding of up to 8–14 hours. Higher diesel prices are also raising irrigation costs, posing risks to agricultural production and food security.
Taskeen Ahmed stressed the need for urgent policy measures to mitigate the risks. He called for diversification of energy sources, faster adoption of renewable energy, and securing long-term LNG supply contracts.
He also recommended rationing energy use, expanding rooftop solar, prioritising export-oriented industries for uninterrupted supply, and strengthening storage and LNG infrastructure.
“Without a clear and coordinated energy strategy, the economy risks slipping from a fragile recovery into a deeper structural crisis,” he warned.
