Published : 13 Aug 2026, 10:42 PM
Updated : 08 Sep 2026, 09:32 AM
Exporters have reported a 390 percent rise in diesel use at three factories over June and July as gas and power shortages disrupted production, with additional fuel consumption reaching 136,214 litres.
The increase pushed up production costs and raised concerns among export buyers about Bangladesh’s ability to maintain reliable supplies, exporter leader Syed Nasim Manzur said at a discussion on Thursday.
Had the private sector waited on the government, the situation would never have reached the position it finds itself in now, the president of the Leather Goods and Footwear Manufacturers and Exporters Association of Bangladesh said.
"We work in spite of government and do it on our own," Manzur said.
Manzur noted his factories are not as energy-intensive as textile mills, but had still seen a sharp jump in diesel consumption over two months.
"If a small shoe factory like ours sees a 390 percent increase, you have to understand the situation.”
He called on authorities to at least give industries advance notice of supply schedules, so factories could plan their production shifts accordingly.
"You can't give everyone power all the time. Just tell us when it'll come, and we'll adjust. If we know it's midnight to 4am, we'll shift our production. But we need that certainty.”
Without timely gas and power, Manzur said, factories were forced to shift output to nights, holidays or off-peak hours, driving up diesel bills, overtime costs and other expenses.
The disruption is also affecting exporters’ relations with overseas buyers, according to him.
Customers are seeking assurances that suppliers will be able to deliver orders on time in the next season.
“Customer confidence is being shaken a little,” he said, adding that buyers were asking what plans Bangladeshi manufacturers could show to guarantee deliveries.
Bangladesh has an opportunity to expand exports as Vietnam faces labour shortages, Manjur said. But continued energy uncertainty could allow competitors such as Cambodia, Indonesia and India to capture that business.
Industry Seeks Priority
Bangladesh Chamber of Industries President Anwar-ul Alam Chowdhury Parvez said gas and power shortages had cut industrial production by 35 percent to 40 percent.
He called for industries to get priority in energy supplies, saying businesses were paying for gas even when supplies were unavailable.
David Hasnat, president of the Bangladesh Independent Power Producers Association, said daily gas demand was around 4,000mmcf against supplies of about 2,700mmcf, leaving more than 7,000MW of gas-fired power generation idle.
Hasnat said installing new floating storage and regasification units requires approvals and subsea pipelines, making the government’s target of new terminals at Payra, Mongla and Hiron Point by 2029 difficult to achieve.
He favoured land-based LNG terminals in the longer term.
LNG Import Risks
Shafiqul Alam of the Institute for Energy Economics and Financial Analysis said expanding costly LNG imports was not a sustainable solution.
Bangladesh spent more than $3.5 billion on imported LNG in fiscal 2024-25, with further imports likely to add pressure on gas prices, subsidies and foreign exchange.
He called for reducing gas system losses, promoting energy-efficient technology and expanding rooftop solar.
Dhaka University teacher Moshahida Sultana urged an emergency plan for FSRU failures and questioned plans to expand private-sector involvement in fuel imports and distribution.
