Bangladesh Experiences Fuel Shortages Following Disruptions from West Asia Conflict

A deepening fuel crisis has gripped Bangladesh amid ongoing conflict in West Asia, triggering long queues at petrol stations, rationing measures and emergency government responses to secure energy supplies. The shortage is largely driven by disruptions in global oil and gas exports through the Strait of Hormuz — a vital trade route affected by the Iran conflict — which has reverberated across energy-dependent economies in South Asia.

Across Dhaka and other major cities, motorists and commuters have been seen waiting for hours at filling stations as fuel supplies fail to meet demand. Long lines of cars and motorcycles have become a common sight, with rationing limits on how much fuel motorists can purchase in a single visit under government directives aimed at managing limited stocks. Authorities responded to the shortage by reducing fuel allocations to service stations and cutting gas supplies to power generation and industrial sectors, moves intended to stretch available resources until new imports arrive.

Bangladesh imports more than 90 % of its energy needs, including petroleum products and liquefied natural gas (LNG), mainly from Middle Eastern countries. As the conflict escalates, deliveries have slackened and prices have climbed globally, placing additional pressure on Dhaka to secure alternative supplies and financing to maintain imports. The government is negotiating for more than $2 billion in fresh external funding from multilateral partners, including the International Monetary Fund (IMF) and Asian Development Bank (ADB), to pay for fuel and LNG shipments and stabilise energy imports.

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The energy crunch has had cascading effects on Bangladesh’s broader economy. Many power plants and factories are operating below capacity or under load-shedding conditions due to the constrained fuel supply needed for electricity generation, while higher global energy prices threaten inflationary pressure on essential goods. Government officials have repeatedly assured citizens that supplies are being managed and that price hikes may be limited, but opposition figures warn that continued instability in global oil markets could eventually push domestic fuel prices higher.

In response to the crisis, Dhaka has also sought to diversify its sources and logistics for fuel imports. Negotiations with neighbouring countries and international partners aim to establish alternative shipping and supply routes, while discussions with Iran have reportedly secured assurances for safe passage of some Bangladeshi oil tankers through a volatile Strait of Hormuz. This diplomatic effort is part of a broader strategy to mitigate reliance on single supply chains during wartime disruptions.

For ordinary Bangladeshis, the immediate impact remains tangible and disruptive. With limited fuel availability, daily life has been affected — from commuting to transporting goods — and many households and businesses are adapting to rationing measures. The government has appealed for public patience and cooperation, emphasising that stabilising the energy situation will require both short-term crisis management and longer-term shifts in supply strategy. With the conflict in West Asia showing no signs of immediate resolution, Bangladesh — like many other import-dependent nations in the region — faces a challenging path ahead to ensure energy security and economic stability.

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