Energy disruption hits Bangladesh and Pakistan as Gulf crisis worsens

A national gas and energy crisis is gripping Bangladesh, with intermittent supply causing residents to wait until midnight to cook dinner. Power outages often leave food half-cooked, even as some households switch to induction cookers. In Pakistan, the government introduced a fuel subsidy on Wednesday to combat sharp fuel price hikes, but the program is not functioning smoothly.

Over 2,000 km away, Pakistan's residents have struggled to register for the subsidy, requiring both vehicle registration and mobile phone registration. The crisis stems from attacks on oil and gas exports through the Strait of Hormuz and fighting between Saudi Arabia and Iran-backed Houthis, which threaten trade through the Red Sea.

This has driven Asian spot LNG prices to nearly US$30 per million British thermal units, a significant increase from just US$10 pre-war. As a result, Bangladesh relies on spot market gas deliveries, leading to blackouts and factory shutdowns. Pakistan, too, is grappling with power shortages and transport fuel price hikes, with the government's fuel relief scheme offering minimal relief to the impoverished.