Bangladesh Energy Crisis Forces Shutdowns Across Over 100 Manufacturing Facilities

A severe national energy deficit has plunged Bangladesh’s industrial sector into turmoil, forcing more than 100 manufacturing plants to halt operations over the past week. Acute shortages of natural gas and persistent electricity load-shedding have severely impacted key sectors, including essential food processing, pharmaceuticals, steel, ceramics, and textiles, sparking widespread economic concern.

The crisis has intensified over the past month, reaching a critical threshold due to sustained drops in grid pressure. Industrial clusters across Narayanganj, Narsingdi, Gazipur, Savar, Chattogram, Habiganj, Mymensingh, and Khulna have been severely disrupted. Beyond the total closures, more than 150 additional factories are operating at a fraction of their installed capacity.

Key Industrial Conglomerates Face Severe Disruptions

Major commercial groups responsible for refining and distributing basic commodities—such as flour, edible oil, sugar, and lentils—have reported significant operational cutbacks:

• Meghna Group of Industries (MGI): Operations have ceased across 40 of its 57 factories, primarily affecting consumer essentials. To prevent immediate market deficits, MGI has implemented supply rationing, reducing daily dispatches from 50 tonnes to between 20 and 25 tonnes.

• TK Group: The majority of its 28 industrial units are currently offline. In regions surrounding Dhaka, only one gas-reliant facility remains operational under strict limits, whilst facilities in northern and southern districts face up to 10 power outages daily.

• ACI Limited: Output across facilities in Rupganj, Bandar, and Gazipur has dropped by 30 to 50 per cent, with salt refining operations bearing the brunt of the deficit.

• City Group: Production at City Edible Oil Limited in Rupganj has plummeted from a normal capacity of 2,500 tonnes per day to under 1,000 tonnes, with overall plant efficiency dropping by 80 per cent.

       [National Daily Demand: ~3,800 MMcfd]
                         │
        ┌────────────────┴────────────────┐
        ▼                                 ▼
[Standard Supply Target]        [Recent Supply Dip]
    ~3,000 MMcfd                      1,730 MMcfd
        │                                 │
        ▼                                 ▼
 (Managed Rationing)             (Severe Supply Crisis)
                                          │
                                          ▼
                               [Partial Recovery: 2,440 MMcfd]
                                (Domestic: 1,610 | LNG: 830)

Strategic Sectors Struggle with Alternative Energy Costs

The ripple effects of the energy supply disruption extend deep into high-value and export-oriented sectors:

• Pharmaceuticals: Companies including Square Pharmaceuticals are running essential units in Pabna and Kaliakair on expensive diesel fuel. Because halting pharmaceutical lines requires a complex 10-to-15-day restarting procedure, manufacturers are absorbing exorbitant fuel costs to maintain continuous output.

• Steel Processing: BSRM has suffered full gas supply interruptions, relying entirely on diesel generators to keep production moving at under 50 per cent capacity, sharply inflating overheads.

• Ceramics: RAK Ceramics (Bangladesh) suspended all operations across its four main units following complete gas cut-offs.

• Textiles & Garments: In Narsingdi, which supplies 70 per cent of the national domestic fabric demand, 90 per cent of gas-reliant textile mills are closed, lowering regional capacity to 10 per cent.

• Frozen Food Sector: Processing plants in Khulna, responsible for 80 per cent of Bangladesh’s seafood exports, are incurring immense expenses running backup generators to power cold storage units during peak harvest season.

Market Inflation and Gas Supply Breakdown

The shortfall has swiftly impacted distribution hubs. Nitayanganj in Narayanganj—a central wholesale trading centre—received no sugar deliveries for three consecutive days, resulting in a wholesale price surge of 7 taka per kilogramme.

State-run Petrobangla reports that national daily demand stands at 3,800 million cubic feet per day (MMcfd), with 3,000 MMcfd required for basic stability. On 14 August 2026, total national supply plummeted to 1,730 MMcfd. A modest recovery occurred the following day, bringing total supply to 2,440 MMcfd—comprising 1,610 MMcfd from domestic production and 830 MMcfd from re-gasified imported Liquefied Natural Gas (RLNG). Business trade associations continue to call for fast-track policy interventions, including the restoration of compressed natural gas shipments from Bhola, to prevent wider market instability.