Category: Energy and Power

The Minimum Wage Board has proposed a new minimum monthly wage of Tk 13,275 for workers in the battery manufacturing sector.

under the proposal, workers would also receive a 5.0 per cent annual wage increment, along with a risk allowance for those directly engaged in the sector. The Board under the Ministry of Labour and Employment issued a noti?cation on February 10, announcing the proposal and inviting objections or recommendations within 14 days of publication.

according to the draft proposal, a Grade Four worker would receive a minimum monthly wage of Tk 13,275, including Tk 6,650 as basic pay.

a house rent allowance of Tk 3325, equivalent to 50 per cent of the basic pay, will be provided. Besides, they are entitled to Tk 1,300 as medical allowance, Tk 1000 as transportation allowance, and Tk 1,000 as risk allowance.

The domestic lique?ed petroleum gas (LPG) market is undergoing a shake-up as stricter banking rules during the interim government have altered who can import fuel. As a result, some of the largest players have been sidelined, while emerging companies are rapidly expanding their footprint.

two former key market players, Bashundhara LP Gas Ltd and Beximco LPG, have effectively been excluded from direct imports since the 2024 political changeover and the subsequent formation of the interim government. Meanwhile, Meghna Fresh LPG Ltd, Jamuna Spacetech Joint Venture and United Aygaz LPG Ltd have gradually increased their market share up to ?scal year (FY) 2025.

according to National Board of Revenue (NBR) data, LPG imports rose from 12.23 lakh tonnes in 2023 to 14.42 lakh tonnes in 2024, and 14.47 lakh tonnes in 2025.

in the ?rst two months of 2026, up to February 24, some 13 companies imported 2.13 lakh tonnes, signaling a strong start to the year.

Bangladesh could face mounting energy and ?nancial pressures amid rising tensions between the United States and Iran, with concerns growing over possible disruptions in the Strait of Hormuz, a key route for the country’s energy imports. With 65-70 percent of the nation’s energy demand met through imports-primarily Lique?ed Natural Gas (LNG), crude oil, and Lique?ed Petroleum Gas (LPG)- sector experts warn that a prolonged regional war could paralyze the economy.

the Strait of Hormuz is the world’s most vital oil transit point. Reports indicate that Iran’s Revolutionary Guard has begun transmitting radio warnings that vessels may be barred from the passage. If the Strait is of?cially closed, international research agencies forecast that crude oil prices could surge to between USD $95 and $110 per barrel. For Bangladesh, this is a direct threat.

Bangladesh must prioritize boosting investment, strengthening energy supply, and supporting private sector growth to generate jobs for its expanding workforce, economists and business leaders said at a recent policy dialogue.

they also called for decisive action against willful loan defaulters and deeper ?nancial sector reforms, warning that the country’s banking system remains fragile amid rising nonperforming loans and weak credit growth.

the observations were made at a roundtable titled ‘Looking into Bangladesh’s development: priorities for the newly elected government in the short term to medium term,’ jointly organized by the Centre for Policy Dialogue (CPD) and The Daily Star in Dhaka.

economy under Strain Speaking at the event, Sadiq Ahmed, vice chairman of the Policy Research Institute of Bangladesh, said the country is facing a precarious economic situation. GDP growth slowed to around 3.5 percent in ?scal year 2024-25, while unemployment among educated youth has climbed above 10 percent. Poverty is also rising, underemployment remains widespread, and in?ation persists at about 8.5 percent-nearly three times the global average. Moderating the discussion, CPD Executive Director Fahmida Khatun said weak private investment and declining credit growth are limiting economic expansion and employment opportunities. She emphasized that improving the investment climate and revitalizing private sector activity are essential for job creation. Restoring macroeconomic stability, ensuring policy predictability, and reducing regulatory complexity would help attract both domestic and foreign investment, she said. Fahmida also highlighted the need to expand the tax base and strengthen governance in the ?nancial sector to support sustainable growth. M Masrur Reza, chairman and CEO of Policy Exchange Bangladesh, said the new government has inherited a fragile economy and must restore ?scal discipline, pointing to weak revenue mobilization, rising public debt, and inef?cient spending. Banking Sector Challenges Participants identi?ed the banking system as a major bottleneck to economic recovery. Nonperforming loans continue to rise, depositor con?dence has weakened, and private sector credit growth remains sluggish.

aK Azad, vice president of ICC Bangladesh, warned that heavy government borrowing from banks is crowding out private sector lending. He called for strict action against willful defaulters to restore discipline in the ?nancial system. Md Main Uddin, a professor at the University of Dhaka, criticized policies that allow repeated loan restructuring with minimal down payments, arguing that such measures only provide temporary relief.

energy and Policy Implementation Energy supply constraints were also highlighted as a major obstacle to industrial expansion. Sha?qul Alam, lead energy analyst at the Institute for Energy Economics and Financial Analysis, noted that Bangladesh’s growing dependence on imported fuel has increased vulnerability to global price shocks. He called for greater investment in domestic gas exploration, energy ef?ciency, and renewable power to ensure reliable electricity for industries. Mahfuz Anam, editor and publisher of The Daily Star, observed that Bangladesh often formulates sound policies but struggles with execution. Bureaucratic processes frequently slow decision-making and delay development projects, he said. He suggested expanding digitalization across ministries to improve ef?ciency and reduce irregularities, along with forming independent advisory groups to guide reforms. Business leaders also urged administrative reforms, including streamlining foreign investment approvals, introducing a single-window system, and strengthening support for small and medium enterprises as Bangladesh prepares to graduate from the Least Developed Country category.

The war in the Middle East and the Gulf region has taken an alarming turn as Iran and the Israel-US alliance have begun targeting oil installations and pipelines. Several re?neries in Iran, as well as facilities in Bahrain and Saudi Arabia, have reportedly caught ?re. LNG infrastructure in Qatar has also been targeted. Fires at oil re?neries have triggered acid rain in Tehran and surrounding areas.

oil prices have already jumped to around $110 per barrel and could rise to $150 or beyond if the con?ict intensi?es further. Global stock markets have tumbled, and the energy sector worldwide is now facing a major crisis.

the Middle East and Iran play a crucial role in the global energy market.

iran is the fourth-largest producer of oil and the third-largest producer of dry natural gas. Meanwhile, Saudi Arabia, the UAE, and Kuwait are among the world’s leading crude oil exporters, while Qatar is the largest exporter of lique?ed natural gas (LNG). Strikes and damage across the Arab Gulf region indicate a rapidly escalating risk. Fires at Ras Laffan and Ras Tanura, along with reduced shipping traf?c through the Strait of Hormuz, have already pushed oil prices higher. While an intentional or accidental attack on major infrastructure could cause signi?cant casualties and damage, several factors suggest that the current intensity of the con?ict may be dif?cult to sustain for long. Now that the con?icting parties have chosen the self-defeating path of attacking oil and LNG infrastructure, the consequences are already affecting the energy security of major fuel-importing countries.

the Arab and Persian Gulf states are not direct participants in the con?ict, yet they are bearing the consequences for hosting U.S. military bases that are used to launch operations in the region. For obvious reasons, the present pace of strikes cannot continue inde?nitely. U.S.

and Israeli forces claim they are steadily degrading Iran’s missile and drone capabilities.

at the same time, interceptor missile stocks in Gulf countries are reportedly declining.

the United States and Israel also claim to have established air superiority over Iran, which could allow them to rely more on aircraft-delivered munitions and more precise targeting of drones and other aerial threats.

iran’s strategy appears to involve striking as many targets as possible, including air bases, embassies, hotels, and other locations associated with American presence.

the reported assassination of Ayatollah Ruhollah Khomeini has further strengthened Iranian resolve, and the country may continue ?ghting with determination. Reports suggest that ?eld commanders have been given authority to launch attacks without centralized coordination.

in a con?ict spread over such a wide area, this decentralized approach may explain the scattered and sporadic nature of Iran’s attacks.

iran has not completely closed the Strait of Hormuz, largely because its own oil exports to China depend on that route. However, Tehran has declared that ships carrying cargo destined for the United States, Israel, or Western countries will not be allowed passage. Meanwhile, attacks on re?neries and LNG infrastructure threaten to severely weaken the region’s ability to maintain energy exports.

arab countries and China have already begun diplomatic discussions aimed at persuading the con?icting parties to agree to a cease?re.

the crisis has also complicated the task of OPEC+, which was already facing mounting ?scal pressures on key producers such as Saudi Arabia. With the U.S.

and Israeli attacks on Iran and Tehran’s retaliatory strikes across the region, the short-term balance between global supply and demand has become far more uncertain. Volatility and price swings in crude oil markets are therefore likely to persist for months-even if the con?ict ends quickly.

a prolonged or unstable outcome, marked by intermittent violence over months or years, would make energy markets even more unpredictable.

this year will test OPEC+’s ability to manage global oil markets.

the impact is already being felt worldwide.

in Australia, for example, fuel prices are rising sharply. Diesel prices have increased from about AUS$0.90 to AUS$2.20 in cities, and up to AUS$3.50-4.00 in remote areas.

the situation is even more concerning for Asian countries that rely heavily on energy supplies from the Middle East.

the ongoing con?ict has also created new uncertainty around Qatar’s massive LNG expansion projects.

the North Field expansion, designed to increase LNG export capacity from 77 million tonnes per annum (mtpa) today to 110 mtpa by 2027 and potentially 126 mtpa by the end of the decade, has been central to expectations of abundant LNG supply later in the decade. LNG megaprojects depend on tightly managed engineering schedules, and smooth supply chains.

even temporary disruptions around Qatar’s export hub at Ras Laffan, or heightened security risks in the Gulf, could delay the commissioning of new liquefaction trains. Rising insurance costs and shipping ‘war premiums’ for vessels passing through the Strait of Hormuz could also delay deliveries of critical equipment. QatarEnergy has already announced a delay in its 33 mtpa North Field East project, now expected to start operations toward the end of 2026 rather than mid-2026.

a delay of six to twelve months would remove substantial LNG volumes from global markets at a time when buyers had expected lower prices in 2027-28.

the con?ict also raises concerns about the future management of the massive gas reservoir shared by Qatar and Iran. The ?eld contains about 51 trillion cubic meters of gas in place, including roughly 25 trillion cubic meters of recoverable reserves in Qatari waters and about 14 trillion cubic meters in Iranian waters.

effective reservoir management requires coordination between the two countries because production on one side can in?uence pressure and gas migration on the other. Political instability in Iran or a shift toward resource nationalism could complicate this cooperation and create uncertainty for long-term development of the ?eld.

the current con?ict therefore threatens not only present fuel supply chains but also future energy investments and expansion projects.

the immediate impact of attacks and counterattacks on oil and LNG infrastructure is already visible in rising prices and supply disruptions. Countries such as Japan, South Korea, China, and Taiwan, which rely heavily on Middle Eastern energy supplies, have already expressed concern.

india has received temporary relief after the United States allowed it to continue purchasing oil from Russia. Bangladesh could also bene?t if it manages to increase fuel imports from India and China. However, it remains unclear what provisions were included in contracts recently concluded by Bangladesh’s interim government with Japan and the United States.

it is hoped that effective diplomacy will soon bring the con?icting parties back to negotiations. For Bangladesh, the priority is managing the situation prudently.

the country may have no choice but to signi?cantly reduce the use of petroleum products, particularly diesel, and manage with limited LNG supplies.

the government has already imposed restrictions on the sale of petroleum products to automobiles, which appears to be a sensible step. However, there is no reason for panic yet.

the irrigation season has already ended, and irrigation pumps are the largest consumers of diesel.

if fuel use in transportation is carefully managed, the situation may remain manageable.

india has resumed supplying diesel through the cross-border pipeline, and several ships carrying crude oil and LNG have already reached Bangladesh. The government must therefore focus on managing demand through strict monitoring.

at a time resembling a fuel famine, luxurious or wasteful use of electricity and fuel cannot be justi?ed. Gas supply should also be restored soon to at least two ef?cient fertilizer plants-KAFCO and the modern fertilizer plant at Ghorashal. While people can survive without electricity for limited periods, prolonged shutdown of fertilizer plants would harm agriculture and threaten food security.

as Arab and Persian Gulf countries are major suppliers of oil, LNG, and fertilizers, Bangladesh must pursue aggressive diplomacy to identify alternative sources.

at the same time, it must recognize that every new strike on oil and gas infrastructure is pushing global prices higher. Bangladesh may therefore have to cut costs in other sectors in order to allocate more resources for fuel imports. Ultimately, everyone hopes that the con?ict will end soon and that normal global energy trade can resume.

Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood has said that there is no fuel shortage in the country and urged citizens not to panic-buy petroleum products, as the government maintains adequate fuel reserves, ensuring an uninterrupted supply. ‘There is no reason for people to worry about fuel oil,’ the minister said during a recent media brie?ng outside the Prime Minister’s Of?ce (PMO) in the city. He had just emerged from a meeting with Prime Minister Tarique Rahman, where they discussed the global energy situation, particularly the growing concerns surrounding fuel supplies due to the ongoing con?ict in the Middle East. About the current rationing system at fuel stations, Iqbal Hassan explained that the measure was introduced to manage uncertainty over the duration of the con?ict. However, he said that the rationing has caused some citizens to stockpile fuel which has led to unnecessary panic. ‘In reality, there is no shortage of fuel oil,’ he reassured, adding that two additional fuel shipments are scheduled to arrive in Bangladesh on March 9

The government has ordered the deployment of mobile courts across the country to prevent illegal hoarding, overpricing, and smuggling of fuel amid supply concerns triggered by the Middle East con?ict.

the Ministry of Power, Energy and Mineral Resources recently wrote to the Cabinet Division, asking for instructions to be issued to district administrators (DCs) to initiate ?eld-level monitoring.

the move follows media reports of unscrupulous traders creating an ‘arti?cial crisis by stockpiling fuel’. While the government has already set per-vehicle sale limits to manage reserves, authorities have noted several ?lling stations selling fuel above regulated prices or diverting supplies to the black market. Senior Assistant Secretary Enamul Hoque signed the letter, emphasizing that these measures are essential to ensure an uninterrupted energy supply. Following the directive, executive magistrates have already begun conducting drives at different petrol pumps in the capital

Both companies have pledged to prioritize production for domestic needs to offset risks to oil imports from the Middle East. PTT Exploration and Production Public Co. (PTTEP) says it is monitoring closely the developing situation in the Middle East and has evacuated personnel from high-risk areas.

the company stressed that it does have a Business Continuity Plan (BCP) for managing business operations during periods of uncertainty.

all its petroleum exploration and production operations in the UAE and Oman are currently continuing without interruption. In Thailand, PTTEP has taken steps to support the Ministry of Energy’s policy of maintaining continuity of domestic petroleum supply and ensuring national energy security.

these measures include maximizing natural gas production in the Gulf of Thailand and adjusting schedules for planned maintenance shutdowns to mitigate potential impacts on industry and domestic users.

Minister for Power, Energy and Mineral Resources Iqbal Hassan Mahmood recently said Bangladesh has no alternative but to use its existing fuel resources in a cost-effective manner due to the ongoing war in the Middle East. ‘Our only option is to use the fuel we have in hand in a sparing manner until supply system stabilizes,’ he told reporters at Secretariat after a meeting with Paul Kapur, US Assistant Secretary of State for South and Central Asian Affairs.

the minister said discussions were held on how to manage the available energy resources ef?ciently amid the global uncertainty. He urged people to be economical in using electricity and fuel by limiting the use of private vehicles and avoiding unnecessary illumination and decorative lighting.

As Bangladesh gradually moves toward clean and sustainable energy, the transition is about more than reducing carbon emissions.

it also offers opportunities for job creation, economic growth, and building a more inclusive society. For this transition to succeed, women must play a central role. Women already play a key role in managing household energy-making daily decisions about cooking fuels, electricity use, and energy conservation. When energy prices rise or shortages occur, women are often the ?rst to feel the impact. Yet in the renewable energy sector, their role largely remains limited to being users rather than designers, engineers, entrepreneurs, or decision-makers. Globally, women represent only about 32 percent of the renewable energy workforce, according to the International Renewable Energy Agency (IRENA).

their presence in technical and leadership roles is even lower. Bangladesh, despite progress in expanding its energy sector, still struggles to ensure meaningful participation of women.

the Sustainable and Renewable Energy Development Authority (SREDA) reports that renewable energy currently contributes about 5.4 percent of Bangladesh’s total electricity generation. However, the country has made notable progress in solar energy.

around six million solar home systems have been installed, providing electricity to more than 18 million people. Not involving women more actively in such a rapidly growing sector represents a missed economic opportunity, particularly as Bangladesh seeks to balance development goals with climate commitments.

experiences from other countries offer useful lessons.

in Nepal, government-backed renewable energy programs have helped women become entrepreneurs in solar and micro-hydro power.

in India, womenled self-help groups now install and maintain solar pumps for irrigation, earning income and gaining respect in their communities.

in Germany, the Energiewende energy transition initiative has encouraged more young women to pursue careers in renewable energy research and engineering. These examples show that with strong policies and investment in training, meaningful change is possible. For Bangladesh, the ?rst step is capacity building. More young women should be encouraged to study science, technology, engineering, and mathematics (STEM). Scholarships, internships, and partnerships between universities and renewable energy companies can help connect education with employment opportunities.