Severe natural gas shortages across industrial zones have severely disrupted national refining capacity, triggering sharp supply deficits and price hikes for essential commodities, particularly sugar and packaged wheat flour. Market reports indicate that sugar supplies from domestic refineries have dropped by up to 70 per cent compared to normal levels, creating an immediate ripple effect across both wholesale and retail markets nationwide.
Addressing the supply crisis, President of the Bangladesh Sugar Traders Association, Md Abul Hashem, explained that acute gas rationing has restricted sugar mills from operating at full capacity. Long queues of freight trucks remain stranded at factory gates for days, with some refineries delivering barely 25 per cent of their standard daily allocation while others have ceased operations entirely. As a direct consequence, wholesale sugar prices have risen by 1 to 2 taka per kilogram.
The wholesale crunch has inevitably hit retail consumers. At Dhaka’s Mohammadpur Krishi Market, retailers reported a price surge of nearly 500 taka per 50-kilogram sack over the past week. Unpackaged sugar, which retailed at 105 taka per kilogram just days ago, is now selling at 115 taka—a 10-taka increase per kilogram. Concurrently, packaged wheat flour prices have risen; a two-kilogram packet now costs between 115 and 120 taka, up from its previous range of 100 to 105 taka.
A similar trend has emerged at Khatunganj in Chattogram, the country’s premier wholesale hub for essential commodities. Wholesale sugar prices there climbed from 3,600 taka per maund (approximately 37.32 kg) last week to between 3,700 and 3,750 taka. Mir Mohammad Sajjad Ullah, a wholesale trader at Khatunganj, confirmed that reduced factory dispatches pushed prices up by 100 to 150 taka per maund. Consequently, retail prices across Chattogram markets have risen by 5 to 7 taka, reaching 110 taka per kilogram for unpackaged sugar.
Bangladesh relies heavily on imported raw sugar, which requires extensive gas-fired thermal energy during the refining process. Industry consolidation has heightened market vulnerability: while six major industrial conglomerates previously refined sugar in Bangladesh, only three—Meghna Group of Industries (MGI), City Group, and Abdul Monem Sugar Refinery—currently handle processing. Any disruption to production at these key facilities immediately threatens nationwide supply stability.
Gas shortages have also disrupted processing mills for wheat, soybean seeds, and crude edible oils. While palm oil wholesale prices rose by 30 to 50 taka per maund due to international market shifts, soybean oil and packaged sugar prices have remained relatively stable for now, supported by existing reserves. Industry leaders warn, however, that sustained energy deficits could prolong market volatility for household staples.
