Bangladesh under pressure as global energy prices rise

Global energy prices could rise by 32% in 2026 due to the conflict in the Middle East. This could put fresh pressure on Bangladesh’s economy, which relies heavily on energy imports. Higher energy import costs would increase pressure on the country’s foreign exchange reserves. They could also raise electricity generation and industrial production costs, transportation expenses and food prices. This could further complicate efforts to control inflation.

The forecast of rising energy prices was made in the World Bank’s latest report titled Commodity Markets Outlook. Published last week, the report said the average price of Brent crude could reach $91 per barrel in the international market this year. The price stood at $69 per barrel in 2025. It could fall to $79 per barrel in 2027.

According to the World Bank’s forecast, the conflict in the Middle East could push global energy prices to their highest level in four years. However, energy prices are expected to decline by 12% next year.

This situation is particularly important for Bangladesh because a large share of the country’s energy demand is met through imports. International market prices directly affect imports of crude oil, refined petroleum products and liquefied natural gas (LNG). As a result, rising global energy prices increase import costs. This could put pressure on foreign exchange reserves and the dollar market.

Higher energy prices could also increase electricity generation costs and the operating expenses of industrial facilities. Industrial production could face disruptions, particularly if gas and electricity supply shortages persist. This could raise production costs for export-oriented industries, including the ready-made garment sector. Exporters would face additional pressure to remain competitive in international markets.