Energy crisis costs industry Tk 2,387cr daily

Bangladesh’s energy crisis is costing the industrial sector up to Tk 2,387 crore a day in lost economic output as factories continue to face supply disruptions, according to an estimate by the Dhaka Chamber of Commerce and Industry (DCCI).

“Even at 55 percent factory capacity, the daily loss would stand at around Tk 1,074 crore,” said Taskeen Ahmed, president of the Dhaka Chamber of Commerce and Industry (DCCI), referring to the chamber’s estimate.

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The figures underline the growing economic cost of the energy shortage, with manufacturers losing output, paying more for alternative fuels, struggling to meet export orders and holding back investment.

Bangladesh’s industries have been grappling with the latest gas crisis for about a month, following the July 21 LNG terminal disruption. The situation has become particularly severe in industrial hubs over the past one to two weeks.

Bangladesh currently has around 2,420 million cubic feet of gas per day (mmcfd) against demand of about 3,800 mmcfd, leaving a shortfall of roughly 1,380 mmcfd, or 36 percent of demand.

Around 800 mmcfd of LNG is being supplied, but industries continue to suffer from low gas pressure as a significant share of available gas is used for power generation.

“The energy crisis should no longer be viewed merely as a supply-side problem. It is directly affecting industrial production, exports, investment and employment,” Taskeen said.

The impact is already reflected in manufacturing growth, which slowed to 2.86 percent in fiscal year 2025-26 from 3.71 percent a year earlier, according to the DCCI president.

The crisis is also holding back new investment. Around 1,857 applications involving proposed investments of about Tk 35,000 crore have made little progress because of the prolonged suspension of new industrial gas connections, Taskeen said

FACTORIES BEAR RISING COSTS

The losses are particularly severe in industrial clusters. In Habiganj, 171 factories reportedly incurred losses of more than Tk 1,000 crore a day after a complete gas shutdown. In Gazipur, around 18 percent of factories have reportedly declared temporary closure, while industrial areas around Dhaka are facing a gas shortage of about 45 percent, he said.

The cost to manufacturers goes beyond lost production. Factories continue to pay workers, service loans and maintain machinery even when production is disrupted.

Many are also turning to diesel generators during power outages and periods of low gas pressure.

Industrial gas costs around Tk 40 per cubic metre, compared with about Tk 115 per litre for diesel, Taskeen said.

Some factories are reportedly paying an additional Tk 10 per litre to secure diesel, while others spend as much as Tk 50,000 a day on the fuel during frequent power outages, said Asif Ibrahim, former chairman of Business Initiative Leading Development (BUILD).

“These additional costs are raising production expenses and eroding the competitiveness of our industries,” Asif said.

Gas-dependent sectors including textiles, spinning, dyeing, ceramics, steel, glass and fertiliser are particularly vulnerable. Low gas pressure disrupts production, reduces efficiency and makes it harder for exporters to meet delivery schedules.

“Energy shortages are no longer merely an operational inconvenience. They directly affect investment, employment, exports and economic growth,” Asif said.

INVESTMENT PLANS REMAIN STALLED

The crisis is also holding back new investment. Around 1,857 applications involving proposed investments of about Tk 35,000 crore have made little progress because of the prolonged suspension of new industrial gas connections, Taskeen said.

The impact is particularly difficult for cottage, micro, small and medium enterprises, which have less capacity to absorb higher fuel costs and prolonged production disruptions.

Nishat Nahrin Hamid, chairperson of the BGMEA Standing Committee on Energy Optimisation, said the energy crisis was also making it harder for factories to improve productivity.

“Productivity has to be at the centre of everything, especially in the export manufacturing sector,” she said at an event yesterday.

Frequent gas shortages and low pressure are forcing factories to operate below capacity and rely on costly alternative fuels, raising production costs and hurting competitiveness. Nishat urged international brands to treat suppliers as long-term partners and called for predictable energy pricing.

CALLS FOR POLICY ACTION

Taskeen urged the government to import sufficient LNG from multiple sources and prioritise industrial consumers.

Asif called for predictable load-shedding schedules for industrial areas, measures to reduce system losses and tax incentives for solar and storage systems.

In the longer term, he said Bangladesh needs to accelerate domestic gas exploration, expand LNG infrastructure, strengthen transmission networks and diversify towards renewable energy.

“Energy security is now fundamental to Bangladesh’s industrial competitiveness. Reliable and affordable energy must be treated as a strategic economic priority, not simply a utility issue,” Asif said.