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Commodities

Energy Crisis Sparks Chaos in Bangladesh and Pakistan

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Natural Gas
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The global energy crisis is hitting hard in Bangladesh and Pakistan, where gas shortages have caused widespread disruptions. In Dhaka, Parvin Akter times her cooking to the neighborhood's availability of piped gas, which is often intermittent due to the global crunch.

Despite switching to an induction cooker, she still experiences power outages that leave food half-cooked. The situation is similar in Pakistan, where the government has introduced a fuel subsidy program to ease the sharp rise in fuel prices.

The program requires vehicle owners to register for the subsidy, but it's not working smoothly. 'First of all, you have to register your vehicle,' said Mohammad Musharraf, a Karachi resident. 'Then you have to register your mobile phone. How can an illiterate person survive if the conditions are so difficult?'

The global energy crunch has been caused by disruptions in oil and gas exports through key chokepoints such as the Strait of Hormuz and the Red Sea. The problems at these chokepoints have driven Asian spot liquified natural gas prices back toward $30 per million British thermal units, the second spike this year.

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