United News of Bangladesh

Global disruptions to energy supplies and trade routes are increasing the cost of food, transportation and essential goods around the world, weakening economic growth and placing greater strain on vulnerable households and debt-burdened developing nations. The concerns were raised during a special session of the United Nations Economic and Social Council (ECOSOC) on Friday, which focused on protecting energy and trade flows amid ongoing instability in fuel markets, shipping networks and supply chains. “This is not only an energy challenge. It is a development challenge. It is a financing challenge,” ECOSOC President Lok Bahadur Thapa told delegates at UN Headquarters in New York. “Above all, it is a test of our collective ability to deliver on the promise of the 2030 Agenda.” The 2030 Agenda, adopted by all UN Member States in 2015, aims to eradicate poverty, reduce inequality and protect the planet through sustainable development goals by the end of the decade. Rising fuel prices worsening hardship Higher fuel and transportation costs, along with trade disruptions and tighter financial conditions, are increasing pressure on developing economies — especially those heavily reliant on imported food and energy and already struggling with debt. UN estimates show that global fuel prices are currently more than twice the 2025 average. Fertilizer prices may also stay 15 to 20 per cent higher through the first half of 2026 if current disruptions persist. These increases are already contributing to higher food prices and living expenses worldwide. “More than 32 million additional people are at risk of being pushed into poverty globally as a result of the combined shock of rising energy prices, higher food costs and weakening economic growth,” Mr. Thapa said. Women and youth among the hardest hit Women, children and young people are particularly vulnerable to rising energy and food costs, especially in countries where families spend much of their income on basic necessities. Li Junhua, the UN Under-Secretary-General for Economic and Social Affairs, warned that instability in energy and supply systems is putting additional stress on an already fragile global economy by fuelling inflation and limiting governments’ ability to invest in key sectors. “Safeguarding energy and supply flows is therefore not just an economic imperative; it is a fundamental requirement for achieving inclusive and sustainable development,” he said.  Li identified four urgent priorities: maintaining open and predictable energy and commodity markets, expanding affordable financing for developing nations, investing in resilient and sustainable energy infrastructure, and accelerating progress toward Sustainable Development Goal 7, which focuses on access to affordable and reliable energy. Small island nations face severe consequences Mia Mottley, Prime Minister of Barbados, highlighted how small island economies dependent on imported fuel and food are especially exposed to global instability. “Energy is just never energy,” she said. “It is medicine, it is food, it is learning, it is work. It is dignity in a household and sovereignty in a nation.” Referring to the broader effects of instability in the Middle East, Ms. Mottley said international crises quickly spread through shipping routes, fuel prices and government budgets before affecting ordinary citizens. “It arrives as the delayed medical shipment. It arrives in the higher bus fare. It arrives in the smaller plate,” she said. Barbados imports over 85 per cent of its energy, while the wider Caribbean region imports more than 80 per cent of its food supply. “Small size does not soften the shock; it often makes it faster and more expensive,” she added. Calls for global cooperation Thapa urged countries to avoid fragmented responses and instead pursue coordinated international action involving governments, financial institutions, development banks, businesses and civil society. “The question is whether we respond through fragmentation and short-term reaction, or through cooperation, solidarity and shared responsibility,” he said. UN officials also stressed the importance of increasing investment in renewable energy, stronger infrastructure and more resilient trade and energy systems to reduce future risks. “With coordinated action, sustained investment and a renewed commitment to multilateralism, we can build more resilient energy systems, secure supply chains and further promote inclusive and sustainable development,”  Li said.

Dhaka Chamber of Commerce and Industry (DCCI) President Taskeen Ahmed on Thursday warned that the ongoing global energy shock could impose an additional Tk 610 billion annual burden on Bangladesh and significantly strain the country’s economy, urging immediate strategic interventions. He made the remarks while presenting a keynote paper at a round-table discussion titled “Navigating the Global Energy Shock: Impact on Bangladesh & Way Forward,” held at the DCCI auditorium.  Taskeen Ahmed said Bangladesh’s heavy reliance on imported energy – about 95% of consumption – has made the economy highly vulnerable to global price volatility, especially amid geopolitical tensions in the Middle East. “If global oil prices remain above $120 per barrel, Bangladesh could face an additional $4-5 billion in costs alongside increased subsidies for LNG and fuel imports.”  He noted that rising fuel costs are already fuelling inflation, widening fiscal deficits, and putting pressure on foreign exchange reserves. Every $10 increase in oil prices may add roughly $1 billion to Bangladesh’s annual expenditure, while losses of Bangladesh Petroleum Corporation have cumulatively exceeded Tk 45,000 crore.  The DCCI president said the country is experiencing a widening energy-demand gap, with gas supply to industries cut by around 40% and electricity shortages exceeding 3,000 MW. These constraints are affecting manufacturing, exports, and domestic supply chains.  According to the presentation, energy-intensive sectors such as ready-made garments, cement, steel, and pharmaceuticals are facing rising production costs, while freight charges have increased by 20-40% and additional container fees of $500 to $4,000 are pushing up export prices.  Taskeen Ahmed also highlighted the broader socio-economic impact, noting that SMEs report energy as a top business constraint, rural areas face 8-14 hours of load shedding, and higher diesel prices are increasing irrigation costs for farmers, posing risks to food security.  He stressed that Bangladesh must urgently diversify energy sources, accelerate renewable energy adoption, and secure long-term LNG contracts to mitigate risks. The presentation also recommended rationing energy use, promoting rooftop solar, prioritising export-oriented industries for uninterrupted supply, and expanding storage and LNG infrastructure.  The DCCI president warned that without a clear energy strategy, Bangladesh risks sliding from a fragile recovery into a structural economic crisis, urging coordinated policy action to safeguard growth and industrial competitiveness.