The government is weighing a series of austerity measures—including extending weekly holidays, introducing work-from-home arrangements, and partially shifting classes online—as disruptions in global energy markets intensify pressure on Bangladesh’s fuel supply and foreign exchange reserves.
Officials from the Cabinet Division and the Prime Minister’s Office said all ministries and agencies have been instructed to submit proposals on energy conservation. These are expected to be reviewed at the next cabinet meeting.
Authorities are drafting a three-month short-term plan, alongside contingency strategies covering six months to one year, should global tensions persist.
The policy discussions come as Bangladesh faces tight fuel supplies, rising import costs, and visible strain in distribution systems. In recent days, kilometre-long queues have been reported at filling stations in several areas, reflecting growing demand and uncertainty among consumers.
Officials said the ongoing global conflict involving the United States, Israel, and Iran has significantly heightened risks to energy supply chains, with particular concern over the Strait of Hormuz—a critical maritime corridor through which a large share of global oil and liquefied natural gas (LNG) shipments passes.
Any disruption to this route could have immediate consequences for Bangladesh, where power plants rely heavily on imported fuel and gas.
In recent weeks, supply constraints have forced Bangladesh to scale back imports under some long-term contracts and turn to the spot market, where prices have surged. Officials said this has increased reliance on more expensive alternatives, such as furnace oil, for power generation.
At least eight measures under consideration
Government sources said at least eight energy-saving measures are under active consideration, including:
- Adding an extra day to the weekly holiday
- Allowing government officials to work from home two days a week
- Adjusting office hours by starting earlier or shortening the workday
- Introducing partial online classes in educational institutions
- Limiting the use of government transport
- Restricting non-essential overseas travel by public officials
- Strengthening supervision of electricity consumption in offices
- Expanding monitoring systems across ministries
Officials noted that no final decisions have been made, and the cabinet will determine which measures are adopted.
Half of the weekly academic schedule in educational institutions may be conducted online to reduce electricity demand and fuel consumption linked to transportation.
Energy planners are increasingly focusing on demand-side management (DSM), aimed at influencing and reducing electricity consumption patterns, particularly during peak hours. Officials said DSM measures—widely used during the Covid-19 pandemic—could again play a key role in stabilizing demand without significantly affecting essential services.
A senior public administration ministry official, speaking on condition of anonymity, stressed the need for quicker action.
“We have experience from the Covid period. Decisions could have been taken earlier. If required, a special cabinet meeting can be called,” the official said.
Another official suggested involving policymakers who managed previous national crises, noting that many members of the current administration are relatively new to such roles.
None of the officials contacted for this report agreed to speak on the record.
Even before the proposed austerity package is finalized, several energy-saving directives have already been issued to government offices. These include:
- Using natural daylight during office hours
- Maintaining air-conditioner temperatures at 25°C or higher
- Turning off electrical equipment when not in use
- Avoiding unnecessary lighting
- Ensuring efficient electricity use
Each office has been instructed to form a vigilance team to monitor compliance. Officials believe strict enforcement could significantly reduce electricity consumption across government institutions.
Alongside managing domestic demand, the government is also focusing on preserving foreign currency reserves as fuel import costs continue to rise. Proposals under review include restricting overseas travel by officials and avoiding unnecessary borrowing.
A proposal to raise domestic fuel prices may also be discussed, although authorities have indicated reluctance to do so at this stage due to inflation concerns.
“If the global situation worsens, we may need to move beyond short-term steps,” a senior official said, pointing to possible medium- and long-term policy adjustments.
The country’s electricity sector remains particularly vulnerable to supply disruptions.
Md Zahurul Islam, member (generation) at the Bangladesh Power Development Board (BPDB), said Petrobangla has warned of possible gas supply constraints in the coming months.
“Gas supply may decline in the coming months, potentially affecting electricity production. However, if recently purchased LNG shipments arrive on schedule, there will be no impact in April,” he said.
Officials added that Bangladesh has increasingly turned to refined fuel imports at higher prices due to limited domestic refining capacity. Reliance on furnace oil for electricity generation has also grown, raising production costs and increasing pressure on government subsidies.
Authorities have stepped up enforcement to prevent fuel hoarding and artificial shortages. Recent drives by administrative agencies have targeted illegal stockpiling and unauthorized fuel sales, with officials warning that panic-driven demand could worsen the situation.
Officials believe controlling hoarding and ensuring fair distribution will be crucial to maintaining supply stability.
Sources said several ministries have already begun drafting sector-specific austerity plans, which will be consolidated into a unified national framework.
The government is also closely monitoring global market developments to assess whether additional measures—such as extended austerity periods or stricter demand controls—may be required.
Energy experts warn that prolonged disruptions in global fuel supply could force countries like Bangladesh to adopt tougher policies, including broader demand restrictions and structural reforms in energy use.
With global tensions showing little sign of easing, officials acknowledge that the coming months may test the country’s energy resilience.
While short-term conservation measures may ease immediate pressure, analysts say long-term energy security will depend on diversifying fuel sources, expanding domestic energy production, and strengthening demand management systems.
For now, policymakers appear focused on minimizing risks through coordinated austerity measures while preparing for the possibility of deeper disruptions in global fuel supply chains.