🇧🇩 Fuel shock strains Bangladesh reforms

Bangladesh’s government is spending hundreds of millions of US dollars a month to shield consumers from surging energy costs after oil and gas prices jumped following the US-Israel attack on Iran. The crisis has brought power cuts, fuel queues and broader price rises across Bangladesh, with the country importing about 65% of its energy needs last year, according to a South China Morning Post report.

The shock is testing Prime Minister Tarique Rahman’s reform agenda just months after he took office on February 17, pledging sweeping economic and social changes and a path to a US$1 trillion economy within a decade. His administration inherited weakened banks, bad loans and damaged state institutions after Sheikh Hasina’s 2024 ouster, leaving limited fiscal room as inflation rises and growth slows.

The energy burden is complicating efforts to stabilise finances while overhauling key sectors, including labour and financial institutions. It adds external pressure to a government already trying to reset the country’s economic model.

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