Bangladeshโs ready-made garment (RMG) sector is currently facing a severe fuel crisis, putting significant pressure on both production and exports. Industry insiders warn that persistent power shortages, limited diesel supply, and rising costs are making the situation increasingly difficult.
In major industrial areas such as Ashulia, factories are experiencing prolonged power outages. In some cases, electricity is unavailable for 5 to 7 hours out of a 10-hour workday, forcing manufacturers to rely heavily on generators. However, obtaining diesel to run these generators has become a major challenge, with factory owners reporting long waits at fuel stations.
According to factory owners, monthly fuel costs have doubledโfrom around 1.5 million BDT to nearly 3 million BDT. At the same time, rising prices of raw materials, particularly cotton, along with increased transportation costs, have further pushed up production expenses. Despite these rising costs, international buyers remain unwilling to pay higher prices, squeezing profit margins.
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) reports that production capacity has dropped by approximately 25% to 30% due to the ongoing energy crisis. This decline is already affecting export performance. Sources indicate that garment exports in March fell by about 19% compared to the same period last year.
In response, the government has announced several measures aimed at stabilizing fuel supply. Authorities state that fuel cards have been issued to some factories and efforts are underway to improve coordination in fuel distribution.
However, industry stakeholders argue that without addressing deeper structural issuesโsuch as foreign currency shortages, constraints on fuel imports, and limitations in power generationโthe crisis cannot be resolved sustainably.
Experts warn that if the situation persists, Bangladeshโs competitiveness in the global apparel market could be seriously undermined. There are already indications that some international buyers are considering shifting to alternative sourcing destinations.
Bangladesh is one of the worldโs leading garment exporters, with millions of workers directly and indirectly dependent on the sector. Without swift and effective action, the ongoing crisis could have serious consequences for the countryโs economy and employment.
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