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RTD on “Navigating the Global Energy Shock: Impact on Bangladesh and Way Forward”
The recent geopolitical instability in the Middle East has particularly exposed gaps in Bangladesh’s energy capacity, highlighting the long-standing need for effective initiatives and their proper implementation. DCCI President Taskeen Ahmed emphasized that, to ensure long-term energy security across the country, it is essential to expand offshore and onshore gas exploration, diversify sources of energy imports, encourage local and foreign investment in solar and renewable energy by reducing existing duty rates, provide low-interest loans to sector entrepreneurs and reduce prolonged bureaucratic complexities. He also stressed that strong political will is absolutely necessary to achieve these objectives.
Dhaka Chamber President Taskeen Ahmed highlighted these points at the roundtable discussion on “Navigating the Global Energy Shock: Impact on Bangladesh and Way Forward” organized by Dhaka Chamber of Commerce & Industry (DCCI) in collaboration with Bangladesh Sustainable and Renewable Energy Association (BSREA) and Infrastructure Development Company Limited (IDCOL) held on April 09, 2026 at the DCCI auditorium. Md Obaidur Rahman, Secretary, Ministry of Industries, GoB attended the event as the Chief Guest while Md. Abdur Rahim Khan, Administrator, FBCCI and Brig. General Md Shahid Sarwar (Retd.), Member (Power), Bangladesh Energy Regulatory Commission (BERC) were present as Special Guests.
In his welcome address, DCCI President Taskeen Ahmed stated that around 20% of global oil and more than 25% of LNG trade pass daily through the Strait of Hormuz. Bangladesh imports about 95% of its total energy, nearly 90% of which comes through this route. He mentioned that Bangladesh’s energy sector is currently going through a tough time due to geopolitical instability in the Middle East and the dollar crisis. He warned that reserves of diesel, octane and petrol are gradually declining and failure to import them promptly may lead to major disruptions in transportation, power generation and other sectors.
Dhaka Chamber President further noted that every $10 increase in global oil prices adds approximately $1 billion to Bangladesh’s annual expenditure. If oil prices exceed $120 per barrel, the additional cost could rise to $4–5 billion annually (around BDT 610 billion), increasing government losses and significantly raising industrial manufacturing and business operating costs. He added that due to the energy crisis, production capacity in the RMG sector has declined by nearly 50%, cement production cost has increased by Tk. 25-30 per bag. In addition, container freight cost has been increased 20-40% as a result the entrepreneurs have to incur additional cost of USD500-4000 per container. Overall, the cost of living is continuously rising. To address the crisis, he emphasized both short-term measures for energy supply and procurement and long-term strategies such as reducing import dependency and intensifying gas exploration activities in the Bay of Bengal.
In his speech, the Chief Guest, Md. Obaidur Rahman, Secretary, Ministry of Industries, GoB stated that Bangladesh has long been facing persistent energy shortages, which have worsened due to the ongoing geopolitical instability in the Middle East. He noted that although the country requires 600,000 metric tons of fertilizer by June, there is currently a shortage of 400,000 metric tons due to disruption in production. He stated that the government is taking strict measures to reduce bureaucratic delays. However, he acknowledged that capacity limitations, along with a lack of initiative in gas exploration activities, remain challenges that must be addressed urgently. He also mentioned that a policy on electric vehicles is in its final stage and will be finalized soon. Furthermore, he pointed out that the current revenue policies are not always consumer-friendly and require reform. He urged both local and foreign investors to come forward to revive the struggling industries.
Md. Abdur Rahim Khan, Administrator, FBCCI said that the recent energy crisis is affecting every aspect of people’s lives and livelihoods. He emphasized the need for accurate and reliable data to formulate and implement effective strategies. He stressed increasing energy storage capacity and removing existing tariffs on solar and renewable energy sectors. He also highlighted the importance of expanding gas exploration and diversifying energy import sources.
Brig. General Md Shahid Sarwar (Retd.), Member (Power), Bangladesh Energy Regulatory Commission (BERC) stated that renewable energy could be an effective solution to the present and future crises. However, to ensure long-term energy security in industry and other sectors, there is no alternative to increasing both offshore and onshore natural gas exploration activities.
Shibir Bicitro Barua, Additional Secretary, Ministry of Commerce, GoB stated that there are gaps in taking effective initiatives and implementing measures to ensure energy security. He emphasized that reducing subsidies through reforms in the operations of the relevant agencies is essential. He also mentioned that the Ministry of Commerce will propose to the National Board of Revenue (NBR) to increase duties on the import of electric vehicles in order to encourage the use of renewable energy.
Mostafa Al Mahmud, President, Bangladesh Sustainable and Renewable Energy Association (BSREA) stated that there is no substitute for the government’s political will to ensure energy security, but he noted that gaps remain. He proposed providing long-term, low-interest loan support to SME entrepreneurs in this sector.
Zahidul Alam, Senior Vice President, Bangladesh Sustainable and Renewable Energy Association (BSREA) said that currently, there is a 27–30% duty on imported equipment for the solar power sector, which is a major obstacle to its progress. In addition, he proposed providing at least a one-year duty-free facility for batteries used in the solar power sector.
Nazmul Haque, Chief Investment Officer, Infrastructure Development Company Limited (IDCOL) stated that to tackle this ongoing crisis, there is no alternative to forming a national-level taskforce and establishing committees in each ministry to ensure effective action and rapid implementation of decisions.
Vidiya Amrit Khan, Vice President, BGMEA & Deputy Managing Director, Desh Garments Ltd. noted that in European countries, widespread use of solar power has reduced the impact of the ongoing energy crisis. However, the situation in Bangladesh is quite different. she called for better coordination among government agencies in the power sector and expressed concern there have been no significant initiatives to address the post LDC graduation challenges.
Eng. Md. Serajul Mawla, President, Bangladesh LPG Autogas Station & Conversion Workshop Owner's Association observed that due to LPG supply shortages, many stations in the country have already been shut down. He emphasized the need for a long-term master plan and diversification of import sources in this sector. He also noted that removing existing bureaucratic hurdles is essential to enhance capacity in the solar power sector.
Mohammed Nurul Absar, Additional Chief Engineer, Commercial Operation, Bangladesh Power Development Board (BPDB), GoB said that in the 2024–25 fiscal year, BPDB subsidies totaled nearly BDT 63,000 crore. The main reason behind this huge amount of subsidy was the high cost of energy production and expressed concern that any further rise in fuel prices will increase subsidies. He urged placing greater emphasis on renewable energy to address this situation.
Professor Dr. M. Shamsul Alam, Dean, Department of Information and Communication Engineering, Daffodil International University stated that Bangladesh’s energy security is at a critical stage. While the government has taken some measures, they are not adequate. He also called on the Energy Regulatory Commission to strengthen its capacity and engage stakeholders more actively to reduce gap between the consumers and regulators.
Dr. Ijaz Hossain, Professor, Department of Chemical Engineering, Bangladesh University of Engineering & Technology (BUET) said that fuel prices generally decrease 3-4 times per year in the global market. If Bangladesh increases its energy conservation capacity, it could source fuel from different countries at a more reasonable price in larger quantities during low-price periods, thereby reducing subsidies. He also emphasized the need to establish a genuine ecosystem in the energy sector.
DCCI Senior Vice President Razeev H Chowdhury, Vice President Md. Salem Sulaiman, members of the Board of Directors, entrepreneurs, and representatives from public and private agencies were present during the roundtable.
Published on: 2026-04-09