Bangladesh Seeks $2 Billion Loans to Tackle Fuel Crisis Amid Global Price Spike

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Dhaka: Bangladesh is seeking around $2 billion in loans from multilateral agencies to strengthen energy security as global fuel prices surge amidst the ongoing conflict involving the United States, Israel and Iran.

The government has already secured commitments of $1.3 billion from the International Monetary Fund and $500 million from the Asian Development Bank, with efforts underway to expedite disbursement. Authorities are also considering approaching the World Bank for additional support.

Finance and Planning Adviser Rashed Al Titumir said the country is pursuing a three-pronged strategy to ensure sustainable energy supplies, including securing external funding and diversifying fuel sources.

“We are exploring all available options for alternative energy sources,” he said, noting potential imports from North America, South America and Africa.

Bangladesh, which imports about 95 per cent of its oil and gas requirements, has taken steps to curb fuel consumption. These include limiting fuel purchases, suspending operations at most fertiliser plants, deploying police at fuel stations and using naval escorts for LNG shipments.

The country sources most of its crude oil from Saudi Arabia and the United Arab Emirates, while a significant portion of its gas supply also comes from the Middle East.

Officials have warned that any disruption at key energy hubs, including Qatar’s Ras Laffan LNG facility, could further strain supplies.

Despite rising global prices, Bangladesh has so far refrained from increasing domestic fuel and electricity costs, aiming to shield consumers while navigating mounting economic pressures.