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Bangladesh is facing one of its most serious energy shocks in recent years as the fallout from the closure of the Strait of Hormuz continues to disrupt global fuel markets, exposing the country’s heavy dependence on imported fossil fuels.
A new report published on Friday by the Energy Transitions Commission (ETC), titled Lessons on Energy Security after the Hormuz Crisis, warned that countries like Bangladesh are among the worst affected by the global supply disruption and rising fuel prices.
According to the report, the current crisis is no longer solely about climate change or geopolitical tensions, but increasingly about economic security and national resilience.
Bangladesh imports nearly all of its fossil fuel requirements and has limited strategic reserves, leaving the country highly vulnerable to shocks in the international energy market.
Since the Strait of Hormuz crisis erupted in late February, fuel shortages and soaring energy costs have begun affecting multiple sectors across the country.
Industries are facing gas and electricity shortages, forcing many factories to cut production or ration operations. Liquefied petroleum gas (LPG), widely used in households, has become significantly more expensive, while rising fertiliser prices have added pressure on farmers.
The crisis has also disrupted daily life, with businesses struggling to manage higher operating costs and consumers facing increased expenses for energy and transportation.
According to the ETC report, the closure of the Strait disrupted 18.4 million barrels of oil supply per day — nearly one-fifth of global oil flows — along with 110 billion cubic metres of liquefied natural gas (LNG), equivalent to 20 percent of global LNG trade.
The International Energy Agency estimates that global oil supply fell by eight million barrels per day in March alone, nearly double the peak disruption recorded during the 1973 Arab oil embargo.
The report noted that emerging and fuel-importing economies are bearing the heaviest burden of the crisis.
“The impacts are being felt across all regions, but most acutely in emerging and import-dependent economies,” the report said.
Global oil prices have surged above $100 per barrel, while spot LNG prices in Asia have more than doubled since the crisis began.
The ETC argued that the crisis has exposed the structural weaknesses of fossil fuel-dependent energy systems, which rely heavily on uninterrupted fuel imports and remain vulnerable to geopolitical disruptions and price volatility.
In contrast, the report said clean energy systems based on solar, wind and battery technologies are more resilient as they depend primarily on upfront infrastructure investment rather than continuous imported fuel supplies.
ETC Co-chair Adair Turner said the crisis demonstrated that dependence on fossil fuels is not only a climate risk, but also a major economic and strategic vulnerability.
The report identified renewable electricity expansion, electric transport, electric cooking and improved energy efficiency as key policy priorities for countries seeking long-term energy security.
For Bangladesh, analysts say the report carries a significant warning as the country continues to rely heavily on imported LNG, oil and coal to meet growing energy demand.
The report also highlighted neighbouring Pakistan’s rapid expansion of solar energy in recent years, which has helped reduce its exposure to global fossil fuel price shocks.
Experts believe Bangladesh now faces mounting pressure to accelerate investment in renewable energy, modernise the national grid and reduce dependence on imported fuel in order to strengthen long-term energy security.
At the same time, the report cautioned governments against introducing broad fossil fuel subsidies or making heavy investments in new LNG infrastructure, warning that such measures could create long-term financial and energy risks.
Although some countries, including Bangladesh, may temporarily increase coal use to offset gas shortages, the ETC said governments should avoid building new coal-fired power plants or delaying existing phase-out plans.
The report concluded that the Hormuz crisis has exposed the vulnerability of import-dependent economies to global fuel disruptions and argued that the transition to clean energy is rapidly becoming an economic necessity rather than merely an environmental objective.
https://thedailyexpress.news/news/business/1f15034c-2267-6de0-a4f2-0cd8762d8f6f