Bangladesh orders malls to shut early amid power crisis, seeks India's help

Bangladesh is grappling with one of its most severe energy crises, with several parts of the country experiencing excessive power outages. The situation has become so acute that the government has directed shopping malls, shops and markets to shut down by 8 pm to conserve electricity. Businesses, farmers and industries have also been hit by the worsening power crunch. To tide over the crisis, Bangladesh has turned to India, seeking additional diesel supplies.

The power crunch is being felt particularly in rural areas outside the capital, Dhaka, with outages stretching to 8-10 hours, according to local reports. The sweltering heat and the ongoing heatwave have only added to the woes.

POWER STATIONS COME UNDER ATTACK

The excessive load-shedding, which has been going on for days, has prompted frustrated residents to attack electricity facilities in some areas, according to a report in Dhaka Tribune.

It has forced the Bangladesh Palli Bidyut Association to seek police security for grids, substations and electricity offices. Over the past few days, local police stations have received letters from electricity cooperatives seeking deployment of police and regular night patrols at power installations. There have been reports of vandalism and arson in Saidpur, Nilphamari, and Kushtia.

So, what precipitated the recent crisis? The present situation is mainly due to a shortage of fuel, particularly natural gas. Bangladesh imports over 90% of its oil and 30% of its gas.

WHY IS BANGLADESH FACING A POWER CRISIS?

The latest crisis can be squarely traced to two incidents. LNG supply dropped by half after a fire incident on a terminal owned by US company Excelerate Energy last month. The terminal was shut down following the July 21 tragedy. Partial operations resumed only earlier this week.

Secondly, at least two LNG vessels have not been able to offload at terminals due to rough weather at sea, according to a report in Daily Star. Moreover, power supply from imported electricity has reduced as well, resulting in increased blackouts.

Six distribution companies supply electricity to consumers across Bangladesh. Presently, Dhaka has been receiving electricity according to demand. Outside Dhaka, electricity is supplied to rural areas by 80 cooperatives.

Power production has been cut by nearly 1,500 megawatts due to the gas shortage.

The supply crunch is being felt particularly in Mymensingh, Barishal, Rangpur, Sylhet, Rajshahi, and Khulna. Most regions have been experiencing three to five hours of load shedding a day. In Khulna, locals have complained of 9-10-hour outages.

BUSINESSES, FARMERS FEEL THE PINCH

The prolonged power cuts have disrupted farming, restaurant operations and industrial production. The situation has forced farmers to spend more on diesel generators.

Shrimp farmers have been the worst affected. "Whenever the power goes out for several hours, we become anxious. The aerators stop working, oxygen levels in the water fall, and the shrimp begin to suffer," Pabitra Roy, a shrimp farmer, told Daily Star. Bangladesh is the second-largest exporter of shrimp.

Its textile and garment sector, the lifeline of its economy, is also facing the pinch.

With officials warning of no short-term respite, Bangladesh has taken to austerity measures. On Wednesday, the Tarique Rahman-led government ordered all shopping malls, markets, and shops to close by 8 pm. All trade fairs and cultural events across the country have to wrap up by 8 pm. Decorative lighting has been barred, and all illuminated billboards have to be shut down by 7 pm.

Hospitals and pharmacies, however, are exempt. It is a kind of deja vu for the Bangladeshis. Just months ago, all shops and shopping malls were ordered to be shut by 6 pm at the peak of the energy crisis in April during the Iran conflict.

BANGLADESH TURNS TO INDIA FOR HELP

The government said the measures were part of an intensified effort to save power.

To tide over the crisis, Bangladesh has requested India for additional diesel supplies. This was communicated to Indian High Commissioner Dinesh Trivedi during his meeting with Bangladesh energy minister Iqbal Hassan Mahmood last week.

"We have a pipeline with India through which diesel is supplied. We have asked them to provide more," Mahmood told reporters.

The India-Bangladesh Friendship Pipeline, which was operationalised in 2017 during Sheikh Hasina's tenure, plays a vital role in ensuring Bangladesh's energy security. As part of a 15-year agreement, India is obligated to send 1,80,000 metric tonnes of diesel annually to Dhaka.

India has already sent over 30,000 tonnes of diesel to Bangladesh in March and April during the Middle East turmoil.

This, despite ties between the two neighbours going through turbulence over India giving shelter to deposed prime minister Sheikh Hasina. Hasina's recent address to the media in Delhi - her first public speech since she fled Dhaka in 2024 - has only amplified tensions.

For Bangladesh, the present crisis has once again exposed its overt dependence on imported fuel and gas. While additional diesel from India may offer short-term relief, the key challenge is to diversify fuel supplies. It can learn about it with a little help from its neighbour.

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