The war involving Iran, the US and Israel is increasingly affecting energy supplies far beyond the Middle East: Bangladesh is now feverishly looking for opportunities to import fuel after disruptions on regional shipping routes..
Sana'a Khan, News Editor at Modern Diplomacy
Source: Source: Moderndiplomacy.
The war involving Iran, the United States and Israel is increasingly affecting energy supplies far beyond the Middle East, and Bangladesh is now feverishly looking for opportunities to import fuel after disruptions on regional shipping routes.
Bangladesh officials say the country has started receiving diesel supplies from suppliers including China and India, allowing authorities to provide enough fuel to cover the country's roughly one-month demand. Measures are also being taken to secure supplies for another month.
It is a South Asian state with a population of about 175 million people heavily dependent on energy imports: approximately 95% of fuel needs are covered by foreign supplies. Violation of Middle Eastern oil flows after the outbreak of the war thus exposed Bangladesh to serious supply disruption risks.
Fuel normalization and economic disruptions
To cope with supply shortages, authorities have imposed emergency measures, including fuel rationing for vehicles, restrictions on diesel sales and temporary closure of universities.
Energy shortages also affect Bangladesh’s critical export industries. The country is the world's second-largest clothing exporter after China, and many sewing mills during power outages rely on diesel generators.
Industry leaders say the situation has worsened since the conflict began in late February. Electricity outages doubled to five hours a day, forcing factories to rely even more on backup generators.
Mahmoud Hassan Khan, president of the Bangladesh Clothing Manufacturers and Exporters Association, said many companies are having difficulty getting enough diesel to maintain their operation during power outages.
Fuel shortages threaten to disrupt production in one of Bangladesh's most important economic sectors, which accounts for most of the country's export earnings.
Emergency diesel shipments arrive
To stabilize supplies, the state-owned Bangladesh Petroleum Corporation (BPC) has organized the supply of diesel from international traders.
Energy sector officials say three trading companies are currently supplying about 60,000 metric tons of diesel and another 90,000 metric tons are expected later this month.
A shipment of about 27,000 metric tons from PetroChina has already arrived at Chittagong port, with another shipment of about 28,000 metric tons from Vitol expecting an external port raid.
Additional supplies also come via a transboundary pipeline from Numaligarh Refinery refinery in India, which currently supplies about 5,000 metric tons of diesel. Officials said talks were underway to obtain an additional 30,000 metric tons from Indian Oil Corporation.
Bangladesh typically consumes about 380,000 metric tons of diesel per month. However, officials estimate that rationing measures have reduced current demand to around 270,000 metric tons per month.
Oil imports threatened by disruptions in the Strait of Hormuz
While refined diesel continues to flow, Bangladesh faces great risks in securing crude oil supplies for its domestic refineries.
The country imports about 1.4 million metric tons of crude oil annually as part of long-term supply agreements with Saudi Aramco and Abu Dhabi National Oil Company.
However, supplies from these suppliers must pass through the strategically important Strait of Hormuz, a movement that has been severely disrupted by the war. Officials say at least one cargo of about 100,000 tonnes from Saudi Aramco has already been detained in the Persian Gulf because of the ongoing crisis.
Ormuz Strait — One of the world’s most important energy transportation routes, and any long-term disruption could have far-reaching implications for countries heavily dependent on imported fuel.
Gas shortage exacerbates energy crisis
Bangladesh's energy difficulties go beyond diesel shortages. A severe shortage of natural gas has already forced the closure of four of the five state-owned fertilizer plants.
Authorities have redirected available amounts of gas to power generation in an attempt to stabilize electricity production during the crisis.
The combination of diesel shortages, oil import disruptions and limited gas supplies is putting growing pressure on Bangladesh’s energy system at a time when global fuel markets are already experiencing increased volatility.
Analysis: Energy dependence exposes economic vulnerability
Bangladesh's struggle to secure diesel supplies illustrates how a war involving Iran affects the economies of energy importing countries far beyond the immediate conflict zone.
Countries that rely heavily on imported fuels are particularly vulnerable to disruptions in global energy transport routes, especially those linked to the Strait of Hormuz. Even temporary disruptions could lead to fuel shortages, rising prices, and broader economic disruptions.
For Bangladesh, this situation highlights the structural risks posed by its dependence on imported energy. Industries such as sewing, which depend on stable power supply and backup diesel generators, are particularly susceptible to supply shocks.
While emergency supplies from China and India have temporarily stabilized the situation, the situation remains shaky. If the conflict in the Middle East continues to disrupt oil supplies or spur price increases, Bangladesh could face a protracted energy crisis with serious consequences for its economy and export industries.
