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Bangladesh Energy Crisis Deepens Amid Middle East Conflict

Bloomberg Markets •
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Bangladesh is preparing to reduce fuel deliveries to petrol pumps by 10-15% as existing reserves face strain from escalating Middle East conflicts, according to a senior government official. The country's petrol and diesel stocks will last only two weeks, forcing cuts to stretch supplies amid rising prices and energy shortages. These disruptions threaten to undermine the new government's efforts to stabilize an economy struggling with political instability, high inflation, and slow growth. Bangladesh, which imports over 80% of its energy from the Middle East, is also shutting down fertilizer plants to conserve gas and mapping other industrial sectors for temporary halts.

The official confirmed the nation purchased two LNG cargoes on the spot market Wednesday to offset shortages. Bangladesh has just 30 days of jet fuel left in reserves. The energy crisis has forced restrictions on decorative lighting for Ramadan and urged citizens to limit private travel. India faces similar risks, considering contingency plans for cooking gas shortages. The conflict has all but closed the Strait of Hormuz, disrupting production and forcing even cash-strapped buyers to seek alternative supplies.

The Ministry of Power, Energy and Mineral Resources did not immediately respond to requests for comment. The government's measures reflect growing regional vulnerability to Middle East instability, with implications for South Asia's energy security.