Energy disruption hits Bangladesh and Pakistan as Gulf crisis worsens

A gas and energy crisis has struck Bangladesh and Pakistan amid a worsening Gulf crisis. In Dhaka, Bangladesh's capital, Parvin Akter has to carefully time her cooking around the intermittent supply of piped gas, often waiting until midnight to prepare her dinner. Power outages further exacerbate the issue, as they leave food half-cooked. Even switching to an induction cooker has not proven effective, due to frequent power blackouts.

Across the border in Pakistan, the government has introduced a fuel subsidy to counter the surge in fuel prices. However, the program's registration process is cumbersome and not functioning smoothly. Mohammad Musharraf, a Karachi resident, has spent days trying to register his motorcycle and ID card number without success. The subsidies, while easing the burden, are not sufficiently helping those in need.

The crisis originated from attacks by the US and Israel on Iran, disrupting oil and gas exports through the Strait of Hormuz. The ongoing conflict between Saudi Arabia and Iran-backed Houthis has further impacted trade through the Red Sea, driving up Asian spot LNG prices to nearly US$30 per million British thermal units. This sharp increase, the second this year, has severely affected countries with limited financial resources to intervene.

Bangladesh, relying heavily on imported LNG for electricity generation, has experienced blackouts and factory shutdowns. The power sector now needs up to 400 million cubic feet of gas per day through winter, with only two LNG cargoes confirmed for September. Garment factories, the country's biggest export, are struggling, with 55% reporting canceled or reduced orders due to gas and power shortages.

Some factories have resorted to importing fabric from China or paying extra for diesel to keep their operations running. The government is seeking solutions, but relief measures like the Prime Minister's Fuel Relief Scheme have been criticized as insufficient by many.