DHAKA — The government of Bangladesh has imposed fuel rationing, ordered more frequent power cuts and introduced austerity measures to manage an acute energy shortage driven by surging global fuel prices. Authorities have shut fertilizer factories to divert gas to power plants and restricted evening hours for shopping malls as gas and diesel shortages triggered outages in industrial zones.

Bangladesh, which is heavily dependent on imported fuel, has sought additional supplies from India. The government is likely to spend an additional $1.07 billion on liquefied natural gas subsidies in the April–June quarter if global prices remain high. In recent days, queues at fuel stations have shortened after the government increased supplies.

In April, the World Bank said it expects growth in Bangladesh to slow to 3.9% in the fiscal year ending in June 2026, warning that a prolonged Middle East conflict could fuel inflation, widen the current account deficit and strain public finances through higher energy subsidies. The World Bank's division director for Bangladesh and Bhutan said the economy faces vulnerabilities and challenges in economic and employment areas, and that higher fuel prices could hurt farmers and agriculture.

The shortages have hit the country's garment sector, the world's second-largest after China, which earns about $39 billion annually and employs around 4 million workers, mostly women from rural areas. Anwar-Ul Alam Chowdhury, president of the Bangladesh Chamber of Industries, said shipments have fallen between 5% and 13% in recent months, factory output has dropped by 30% to 40% for various reasons, and business costs have risen by about 35% to 40%. He said exports to Europe and the United States could face a major setback, and that customers could lose confidence in Bangladesh's ability to deliver, with India, Vietnam and Cambodia poised to gain market share if the crisis persists. Mosammet Runa, a 35-year-old garment worker who earns about $400 a month with her husband to support their family of six, said the industry is essential to workers like her. "Millions of people like us depend on this industry. It is how we survive," she said.

The strains have reached individual workers. Tariqul Islam, a ride-share driver who turned to the work on his motorbike about a year and a half ago after losing his savings in a clothing business, supports four children, including a daughter at university and a son in college. "But after the fuel shortage began, I would buy fuel one day and run the bike for two days. As a result, I had to sit idle for one day, which reduced my income." He said it was not possible to survive in Dhaka by doing ride-sharing under the current conditions. "If this situation continues, we will have to move back to our village and find some other way to earn a living," he said.

Across Asia, governments are facing similar strains as the war-driven surge in energy prices affects economies dependent on imported oil and gas that passes through the Strait of Hormuz, a chokepoint for about a fifth of global oil and natural gas trade. In late April, the Asian Development Bank cut growth forecasts for developing Asia and the Pacific, now expecting growth of 4.7% in 2026 and inflation rising to 5.2% as oil prices climb and financial conditions tighten.