Bangladesh shuts universities, cuts power use as global fuel crisis deepens
Dhaka, March 10 — Bangladesh has closed universities and ordered cuts to electricity use in government offices as a worsening global fuel crunch linked to the U.S.-Israeli war with Iran disrupts energy supplies, officials said on Tuesday.
The South Asian nation of about 170 million people relies on imports for around 95% of its energy needs, leaving it highly exposed to global market shocks. Oil and gas prices have surged since the conflict escalated in late February, triggering Iranian retaliatory strikes across the Gulf region and forcing the closure of the Strait of Hormuz, a critical energy shipping route.
Authorities moved quickly to introduce emergency conservation measures. Fuel stations have begun rationing supplies, educational institutions were ordered to start Eid Al-Fitr holidays early, and government offices were instructed to cut electricity consumption by half, including limiting air-conditioning and lighting.
Officials said the austerity drive aims to reduce strain on the national power grid as electricity demand rises during the hot season. From March to June, air-conditioning alone consumes more than 2,000 megawatts of electricity nationwide.
Economists warn the measures may only provide temporary relief because Bangladesh lacks strategic energy reserves. Analysts say building reserves equivalent to three to six months of fuel supplies would be necessary to protect the economy from future supply shocks.
Global oil prices have surged roughly 50% since Feb. 28, with Brent crude topping $119 per barrel on Sunday. According to brokerage BRAC EPL, every $10 rise in oil prices increases Bangladesh’s monthly import bill by about $80 million.
Experts say the impact may take months to fully emerge but could eventually affect transportation, agriculture and food supply chains, potentially pushing inflation higher.
