Gulf crisis deepens energy crisis in BD, Pak
Bangladesh and Pakistan are facing growing energy shortages and rising fuel costs as prolonged conflict in the Gulf disrupts oil and liquefied natural gas (LNG) supplies to Asia.
In Bangladesh, intermittent gas supplies and power cuts are forcing households, factories and hospitals to cope with severe disruptions.
The country generates more than 40% of its electricity from imported LNG, while disruptions to supplies from Qatar have forced the government to seek more expensive cargoes on the spot market, Reuters.
The energy shortage is also hurting Bangladesh’s garment industry, a major source of export earnings.
According to a survey by the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), 55% of surveyed factories reported cancelled or reduced orders, while 78% had partially suspended production because of gas and electricity shortages.
Some manufacturers have been forced to use diesel generators and even air-freight products to meet delivery deadlines, adding significantly to production costs.
Pakistan is also under pressure, although its electricity system is facing a less severe disruption.
The country’s power sector could require up to 400 million cubic feet of gas per day during winter, while only two LNG cargoes had been confirmed for September, according to data cited by Reuters.
The immediate concern for Pakistan, however, is the sharp increase in transport fuel prices. Petrol has risen to around 380 Pakistani rupees ($1.37) per litre, while diesel costs about 409 rupees ($1.48).
To ease the burden, the Pakistani government launched a nationwide fuel subsidy on Wednesday.
Motorcycle, rickshaw and small-car owners can receive a subsidy of 100 rupees per litre, subject to a monthly limit. But registration difficulties have frustrated many citizens.
The disruption follows months of instability around major shipping routes.
Fighting involving Iran and attacks affecting the Strait of Hormuz and Red Sea have disrupted energy trade, pushing Asian spot LNG prices close to $30 per million British thermal units, compared with roughly $10 before the conflict.
Shell estimates that around 36 million tonnes of LNG have been lost from Middle Eastern supplies this year, increasing pressure on countries with limited financial capacity to subsidize energy costs.
For Bangladesh, the crisis is already affecting industrial production, exports and daily life.
For Pakistan, the government is attempting to contain the impact through fuel subsidies while preparing for potentially tighter gas supplies during the winter.
