Pakistan and Bangladesh are paying $1 Billion more for liquefied natural gas as the Hormuz Strait remains closed, forcing a switch to costlier spot cargoes.

The closure of the strategic waterway has disrupted regular shipping routes for LNG deliveries, compelling both nations to purchase on the spot market at significantly higher prices. This shift is eroding the cost advantage that made super-chilled fuel an attractive alternative to other energy sources.

Industry analysts note that the premium for spot cargoes over long-term contracts has widened substantially since the strait's closure. The additional expenditure strains national energy budgets and could accelerate efforts to diversify supply routes and energy mixes.

The situation underscores the vulnerability of South Asian energy security to geopolitical chokepoints. Both countries are exploring alternative import infrastructure and renewable capacity to reduce dependence on seaborne fuel shipments through contested waters.