Power, gas shortages set to challenge next Bangladesh government

Power, gas shortages set to challenge next Bangladesh government
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Staff reporter

Published: 2026-02-07 17:24:35

Updated on: 2026-02-07 19:55:48

Whoever forms the next government in Bangladesh will inherit a fragile power and energy sector burdened by three interlinked crises: shrinking gas supplies, rising risks of seasonal power cuts, and mounting unpaid bills to private electricity producers.

Energy officials and industry insiders say the most pressing concern is the deepening natural gas shortage, which has already disrupted households and factories across the country.

With Ramadan, the irrigation season and peak summer approaching, demand for both gas and electricity is expected to surge, raising fears of widespread load-shedding.

Current power cuts, estimated at around 1,000 megawatts nationwide, could intensify significantly in the coming months. Sector experts warn outages may double if fuel availability fails to keep pace with seasonal demand.

At a recent virtual coordination meeting of the Power Division, Petrobangla cautioned that declining domestic gas output is increasingly undermining electricity generation. Gas distribution companies report severe shortfalls, with supply well below demand in major service areas.

The industrial sector is already feeling the impact. Factory owners say reduced gas pressure has forced them to turn to costly alternatives such as diesel, LPG and CNG, sharply increasing production expenses. Business leaders warn that prolonged shortages could lead to factory closures and job losses, particularly in export-oriented industries.

Energy analysts also point to deeper structural problems. Limited progress in offshore gas exploration, dependence on imported fuel and aging power infrastructure are combining to create long-term vulnerability. Some experts estimate that after the end of this decade, domestic gas reserves may no longer be sufficient for large-scale commercial use.

Electricity demand during the irrigation season alone could exceed 18,000 megawatts this year, adding pressure to a system already stretched by fuel constraints. Officials fear that without timely fuel procurement, power cuts of up to 2,000 megawatts could occur during summer and Ramadan.

Financial stress is compounding operational challenges. The Power Development Board has requested tens of thousands of crores in additional subsidies to meet projected demand over the coming months. Without budgetary support, officials warn of prolonged nationwide outages.

Private power producers, meanwhile, are struggling with unpaid government bills that have climbed to roughly Tk30,000 crore. Delays in payments have made it difficult for plant owners to service loans or secure fuel imports, threatening further disruptions to generation.

Despite Bangladesh’s installed capacity of nearly 29,000 megawatts, fuel shortages mean only about half of that capacity can currently be utilised.

The convergence of supply shortages, financial strain and rising demand highlights the scale of the challenge ahead. Analysts say decisive policy reforms, improved fuel planning and financial discipline will be essential if the next government is to stabilise the power and energy sector and prevent deeper disruptions in the years ahead.