Gulf Energy Disruptions Send Shockwaves Through South Asia

The disruptions to Gulf energy supplies are causing fuel shortages and higher costs across South Asia. Bangladesh is particularly exposed, relying heavily on imported LNG for electricity. Disruptions to supplies from Qatar have forced Dhaka to seek more expensive cargoes on the spot market.

Asian spot prices for liquefied natural gas (LNG) have climbed close to $30 per million British thermal units from around $10 before the conflict, according to recent data. The pressure is hitting Bangladesh's garment industry, its biggest export sector, with 55% of factories seeing buyers cancel or reduce orders due to gas and power shortages since late August.

Pakistan is also facing mounting pressure from expensive fuel, with the country introducing a nationwide relief program offering eligible motorcycle, rickshaw, and small-car owners a subsidy of about $0.36 per liter of fuel within capped quotas. Islamabad has ordered businesses to close early, including markets by 9 PM, marriage halls by 10 PM, and restaurants by 11 PM local time.