DCCI urges urgent strategic response as energy shock threatens economy

Key recommendations

• Diversify fuel sources through G2G deals to cut import risk
• Negotiate deferred payment terms for energy imports
• Prioritise energy supply for export-oriented industries
• Renegotiate power plant capacity charges under force majeure provisions
• Expand rooftop solar to ease pressure on national grid
• Expand LNG storage, including a third FSRU and land-based terminals

Bangladesh is facing mounting economic and energy security risks due to ongoing global energy market volatility, with business leaders calling for immediate and coordinated policy action to avert a deeper crisis.

The warning came at a roundtable titled "Navigating the Global Energy Shock: Impact on Bangladesh and Way Forward," organised by the Dhaka Chamber of Commerce and Industry (DCCI) in the capital today (8 April).

Presenting the keynote, DCCI President Taskeen Ahmed said escalating geopolitical tensions in the Gulf have disrupted global energy supply chains, pushing prices to critical levels and exposing import-dependent economies like Bangladesh to severe shocks.

Taskeen said crude oil prices surged to around $120 per barrel in March – well above the $100 "danger threshold" – while freight costs have spiked sharply due to rerouting and risk premiums. "As a result, global trade growth could fall from 4.7% to 2.5%."

If global oil prices remain above $120 per barrel, Bangladesh could face an additional annual energy import burden of $4-5 billion, he said. "Each $10 increase in oil prices adds roughly $1 billion in import costs."

The DCCI president said fuel stock levels have dropped to critical levels. "Diesel reserves can meet only about 11 days of demand, while octane and petrol stocks are sufficient for roughly a week. While Bangladesh remains heavily reliant on imports, with about 95% of its fuel sourced from abroad – much of it transiting through the volatile Strait of Hormuz route."

Taskeen further said, "Foreign exchange reserves have fallen to $29.81 billion, covering only about 5.5 months of imports, raising concerns over balance of payments stability. GDP growth for 2026 could slow to around 3.5%

"Energy shortages are already affecting key sectors. Production in the readymade garments (RMG) sector has declined by up to 50% due to gas shortages, while cement, steel and pharmaceutical industries are facing higher input and logistics costs."

Small and medium enterprises are also struggling, with 45% identifying energy shortages as their primary constraint, he said, adding that rural areas continue to experience prolonged load-shedding.

Recommendations

The DCCI proposed a set of immediate and short-term measures to stabilise the situation.

Key recommendations include diversifying fuel sources through government-to-government (G2G) deals, negotiating deferred payment facilities of 90-180 days, and prioritising energy supply to export-oriented industries.

The Dhaka chamber also called for renegotiating power plant capacity charges under force majeure provisions, expanding rooftop solar, and implementing structured energy rationing in less critical sectors.

The DCCI suggested repairing ageing gas pipelines, conducting energy audits, maximising output from coal-based power plants, and accelerating hydropower imports from Nepal and Bhutan. It identified that LNG storage capacity, including a third floating storage regasification unit (FSRU) and land-based terminals, is critical.