Growing instability in global energy markets, driven by geopolitical tensions in the Middle East, is posing serious risks to Bangladesh’s economy and energy security, experts have warned.
At a press conference organised by the Environment and Ecology Forum Chattogram, analysts called for urgent steps to cut reliance on imported fuel and accelerate investment in renewable energy, particularly solar power.
They pointed to rising tensions involving Iran, the United States and Israel, warning that uncertainty surrounding the Strait of Hormuz could disrupt fuel supplies, according to a release.
Bangladesh depends heavily on imports from Qatar, the United Arab Emirates and Oman, leaving it exposed to any disruption along this key shipping route.
The event in Chattogram, supported by ISDE Bangladesh, brought together academics and campaigners. It was chaired by Professor Khaled Misbahuzzaman, while Bazi Iqbal Bahar Chaberi presented the keynote statement.
The forum said Bangladesh’s energy import bill has risen sharply in early 2026, putting pressure on foreign exchange reserves and widening the current account deficit. This could further weaken the currency and drive inflation higher.
Over the past decade, declining domestic gas output has increased dependence on imported liquefied natural gas (LNG), liquefied petroleum gas (LPG) and petroleum products. Currently, around 80% of crude oil, 65% of LNG and more than half of LPG imports pass through the Strait of Hormuz.
The immediate effects are already being felt. Gas shortages have forced parts of the power sector offline, while industrial output has slowed. Transport costs are rising, and irrigation in agriculture is being disrupted.
The ready-made garment sector, a key export earner, could see production fall by up to 40% if the crisis persists, the forum warned.
Experts also highlighted long-term structural risks. Since expanding LNG imports in 2018, Bangladesh has become increasingly exposed to volatile global energy prices. Recent spikes in LNG and oil prices have significantly raised import costs.
Against this backdrop, the speakers stressed the need to accelerate renewable energy adoption. They cited Pakistan as an example, where rapid solar expansion has reduced reliance on imported fuel.
Bangladesh, they said, has strong potential for rooftop solar. With more than 40 million households, widespread adoption could generate several thousand megawatts of electricity, easing pressure on the national grid and cutting import costs.
The forum outlined a 13-point plan, including removing taxes on renewable energy equipment, expanding rooftop solar in public and private buildings, promoting solar irrigation, introducing electric public transport and increasing access to low-interest green financing.
Speakers said the crisis should be seen as an opportunity to shift towards a more sustainable and self-reliant energy system. Failure to act, they warned, could leave Bangladesh facing deeper economic strain in the years ahead.