Archive · 17 Sep 2026
Gulf Crisis Drives Power, Gas Shortages Across Pakistan, Bangladesh
A conflict in and around the Middle East has made it harder for ships to carry oil and gas to Asian countries.
This has made fuel and liquefied natural gas much more expensive.
Bangladesh relies heavily on imported gas to make electricity, so many homes and businesses are losing power or gas.
Some factories have stopped working or lost clothing orders because they cannot produce goods on time.
Hospitals are using generators, but some wards remain hot and uncomfortable during outages.
In Pakistan, higher petrol and diesel prices are hurting drivers and families.
The Pakistani government has started a fuel discount, but some people are having trouble signing up.
Both countries are trying to find more fuel and protect people and businesses from the shortages.
Disrupted energy shipments through the Strait of Hormuz and Red Sea have pushed Asian spot LNG prices toward $30 per million British thermal units, from about $10 before the war.
Bangladesh, which gets more than 40% of its electricity from imported LNG, is experiencing blackouts, factory shutdowns and reduced industrial production.
A survey found that 78% of sampled Bangladeshi knitwear factories had partially halted production, while 55% reported canceled or reduced orders.
Pakistan has introduced a fuel subsidy of 100 rupees per litre for eligible motorcycles, rickshaws and small cars, but registration problems have frustrated users.
Bangladeshi households, hospitals and poultry farms are also suffering from unreliable gas and electricity, while Pakistani officials seek enough gas for the winter.
- Who
- Households, workers, businesses and governments in Bangladesh and Pakistan are affected; energy suppliers and traders are also involved.
- What
- Disrupted Middle Eastern energy routes have caused higher LNG and fuel prices, gas shortages, power outages, factory disruptions and a Pakistani fuel subsidy.
- When
- The shortages and price increases are occurring this year; Pakistan’s Fuel Relief Scheme began on Wednesday night, and Bangladeshi garment disruptions have been reported since late August.
- Where
- Across Bangladesh and Pakistan, including Dhaka, Karachi, Tangail and Sylhet, with the underlying trade disruptions affecting the Strait of Hormuz and the Red Sea.
- Why
- Attacks and fighting have disrupted oil and gas exports and shipping routes, while Bangladesh and Pakistan have limited ability to absorb the resulting costs.
Governments and Energy Officials
Residents and Businesses
Response to the crisis
Governments and Energy Officials
Officials in Bangladesh say they are seeking solutions, including repairing a nonfunctional LNG terminal, while Pakistan has introduced a fuel subsidy and is trying to secure winter gas supplies.
Residents and Businesses
Residents and businesses say the measures have not fully solved the problem: subsidy registration is difficult, fuel relief is insufficient, and factories face higher operating and transport costs.
Economic effects
Governments and Energy Officials
Some Bangladeshi officials and business representatives reported slight recent improvement as gas supplies increased, and solar power has eased part of Pakistan’s electricity pressure.
Residents and Businesses
Businesses report production stoppages, canceled orders, air-freight expenses and diesel costs, while households, hospitals and poultry farmers continue to face power and gas disruptions.
- Asian spot LNG price
- Near $30 per million British thermal units this week, up from about $10 before the war.
- Estimated LNG loss
- Shell estimates that roughly 36 million tons of Middle Eastern LNG have been lost so far this year.
- Bangladesh’s LNG electricity dependence
- More than 40% of Bangladesh’s electricity comes from imported LNG.
- Bangladesh garment impact
- 78% of surveyed knitwear factories had partially halted production; 55% reported canceled or reduced orders.
- Pakistan fuel subsidy
- 100 Pakistani rupees per litre for eligible motorcycles, rickshaws and small cars, subject to a monthly cap.
- Pakistan fuel prices
- Petrol rose to about 380 rupees per litre and diesel to 409 rupees per litre.
- Pakistan winter gas need
- The power sector may need up to 400 million cubic feet of gas per day through winter.