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Bangladesh\u2019s vulnerability to global energy volatility is striking. Reports indicate that nearly half of its total energy supply was import-dependent as recently as 2023. This reliance has since intensified, with imported fuel now reportedly meeting roughly two-thirds of its power needs, even as much of this fuel snakes its way through the strategically sensitive Strait of Hormuz, making the country acutely vulnerable to disruptions triggered by the conflict.<\/p>\n
Bangladesh’s heavy reliance on imported fuel has left it highly exposed to disruptions from the Iran conflict, amid reports of fuel shortages disrupting production and transportation.
\nEconomists reportedly cautioned that a slowdown in industrial production could trigger a chain reaction, resulting in job losses and reduced export earnings.<\/p>\n
And, as might be expected, industries in Bangladesh are showing signs of strain, if reports are to be believed.<\/p>\n
Fuel shortages and supply delays have become relentless operational hurdles. Extended power outages, sometimes lasting several hours, bring machines to a halt, and with insufficient fuel for backup generators, factories have no fallback to keep production running.<\/p>\n
Nowhere perhaps is this more consequential than in the apparel sector, the backbone of Bangladesh\u2019s economy. Accounting for more than 80 per cent of export earnings and over a tenth of GDP, the industry is not just a commercial enterprise; it is a national pillar supporting millions of jobs and sustaining key foreign exchange reserves.<\/p>\n
Interacting earlier with the media, a senior official of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) reportedly noted that power outages have surged to as much as five hours a day since the conflict began, while diesel shortages have rendered backup generators increasingly unreliable.<\/p>\n
\u201cThe ongoing crisis is clearly disrupting garment industry operations,\u201d a senior representative of another garment manufacturers\u2019 body claimed, adding that many factory owners were struggling to secure adequate fuel to run generators and move goods on schedule, while production in numerous factories was interrupted because fuel deliveries were delayed or were insufficient.<\/p>\n
The shortage is not only slowing production but is also putting the entire supply chain under pressure. In many cases, workers cannot be deployed consistently because production lines cannot operate at full capacity, while limited fuel for transportation is making it difficult to get finished goods to the ports for export.<\/p>\n
On the other hand, rising fuel prices are becoming increasingly difficult to manage, inflating operational costs and squeezing already thin profit margins in a fiercely competitive apparel market, even as the country\u2019s fossil fuel import bill is projected to surge significantly, adding strain at the macroeconomic level.<\/p>\n
Meanwhile, economists have reportedly warned that a slowdown in industrial production could set off a chain reaction, leading to job losses, declining export revenues, and far-reaching consequences for the overall economy.<\/p>\n
In a country where the apparel sector is deeply intertwined with social and economic stability, such disruptions carry the risk of broader systemic stress.<\/p>\n
The crisis, therefore, is not merely about energy; it is about safeguarding economic momentum and social cohesion. As such, calls for decisive policy intervention are growing louder, even as experts emphasised that managing demand is as critical as securing supply.<\/p>\n
Prioritising fuel allocation for key industries like apparel could help cushion the immediate blow, while temporary curbs on non-essential energy use may create breathing room, they argued, while underscoring the urgency of long-term structural reforms, diversifying energy sources, investing in renewables, and improving fuel management systems to reduce exposure to external shocks.<\/p>\n
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Fibre2Fashion News Desk (DR)<\/p>\n
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