Global energy shock may add Tk 610b burden to Bangladesh, warns DCCI

 Dhaka Chamber of Commerce and Industry (DCCI) President Taskeen Ahmed on Thursday warned that the ongoing global energy shock could impose an additional Tk 610 billion annual burden on Bangladesh and significantly strain the country’s economy, urging immediate strategic interventions.

He made the remarks while presenting a keynote paper at a round-table discussion titled “Navigating the Global Energy Shock: Impact on Bangladesh & Way Forward,” held at the DCCI auditorium.

Taskeen Ahmed said Bangladesh’s heavy reliance on imported energy – about 95% of consumption – has made the economy highly vulnerable to global price volatility, especially amid geopolitical tensions in the Middle East. “If global oil prices remain above $120 per barrel, Bangladesh could face an additional $4-5 billion in costs alongside increased subsidies for LNG and fuel imports.”

He noted that rising fuel costs are already fuelling inflation, widening fiscal deficits, and putting pressure on foreign exchange reserves. Every $10 increase in oil prices may add roughly $1 billion to Bangladesh’s annual expenditure, while losses of Bangladesh Petroleum Corporation have cumulatively exceeded Tk 45,000 crore.

The DCCI president said the country is experiencing a widening energy-demand gap, with gas supply to industries cut by around 40% and electricity shortages exceeding 3,000 MW. These constraints are affecting manufacturing, exports, and domestic supply chains.

According to the presentation, energy-intensive sectors such as ready-made garments, cement, steel, and pharmaceuticals are facing rising production costs, while freight charges have increased by 20-40% and additional container fees of $500 to $4,000 are pushing up export prices.

Taskeen Ahmed also highlighted the broader socio-economic impact, noting that SMEs report energy as a top business constraint, rural areas face 8-14 hours of load shedding, and higher diesel prices are increasing irrigation costs for farmers, posing risks to food security.

He stressed that Bangladesh must urgently diversify energy sources, accelerate renewable energy adoption, and secure long-term LNG contracts to mitigate risks.

The presentation also recommended rationing energy use, promoting rooftop solar, prioritising export-oriented industries for uninterrupted supply, and expanding storage and LNG infrastructure.

The DCCI president warned that without a clear energy strategy, Bangladesh risks sliding from a fragile recovery into a structural economic crisis, urging coordinated policy action to safeguard growth and industrial competitiveness.