Bangladesh has been facing frequent power outages this year due to a lack of fuel, as Reuters reports. Between 2017 and 2021, few power cuts were experienced; throughout the whole of 2022, 113 were enforced, and up to the end of May this year, 114 have occurred, with the months that traditionally experience the highest power demand (July-October) yet to come.

Most cuts, some lasting as many as 10-12 hours, have occurred in the late evenings and early mornings, a strategy which appears to be aimed at keeping businesses running. On Monday 5 June, around 25% of the country’s 11.5 GW of gas-fired power capacity, around 66% of the 3.4 GW of coal-fired capacity, and 40% of the 7.5 GW of diesel and fuel oil-fired power generation capacity was shut because of a lack of fuel, a stark indication of the level of the country’s problems.

Economics of course are at play in the fuel shortage – in late April, Bangladesh’s state petroleum company informed the government that it was unable to pay Sinopec, Indian Oil, and Vitol for fuel due to shortages of US dollars. The country’s foreign reserves are at a seven-year low, while the value of the taka, Bangladesh’s currency, has fallen more than 20% against the US dollar since the start of last year, after being stable for around a decade. Another major factor has been climate – the country has been dealing with its longest heatwave in more than half a century, with temperatures around 40C in the capital of Dhaka.

The country’s recent deal with QatarEnergy for supplies of LNG is one way Bangladesh is attempting to head off the problem, although shipments are not due to arrive until 2026, meaning that over the next few years, the country may face increasing problems.