The war in Iran has sent ripples across Asia, with Bangladesh feeling the impact acutely due to its heavy reliance on imported fuel. Tariqul Islam, a 53-year-old father of four in Dhaka, has seen his income plummet as fuel shortages force him to wait in long lines, reducing his ability to earn a living through ride-sharing. "My family was managing fairly well through ride-sharing," Islam said. "But after the fuel shortage began, I would buy fuel one day and run the bike for two days. As a result, I had to sit idle for one day, which reduced my income."
Energy Crunch Hits Bangladesh's Economy
The fuel shortages have disrupted daily life and slowed industrial output across Bangladesh, raising concerns about economic growth. The government has increased fuel supplies slightly, easing conditions, but the broader economic strain remains. The Asian Development Bank has cut growth forecasts for developing Asia and the Pacific, warning that war-driven energy disruptions would slow economies and fuel inflation.
If this situation continues, we will have to move back to our village and find some other way to earn a living.
Bangladesh's garment industry, a key export sector, is also suffering as rising fuel costs drive up production expenses and threaten competitiveness. The government has imposed austerity measures, including fuel rationing and reduced shopping mall hours, to manage the crisis. The World Bank warns that prolonged Middle East conflict could further strain Bangladesh's public finances through higher energy subsidies.
Global Tensions Amplify Economic Risks
Across Asia, governments are grappling with similar challenges as war-driven energy price surges rattle economies dependent on imported oil and gas. Bangladesh has sought fuel supplies from India, which has diversified its sources, including Russia. However, the fiscal situation remains precarious, with higher fuel prices potentially hurting farmers and agriculture. As global tensions persist, the economic outlook for Bangladesh remains uncertain, with many like Islam hoping for a quick end to the conflict and a return to stability.