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Bangladesh's Electricity Bills Just Jumped 16% | DW News

Bangladesh announced a 16% increase in electricity tariffs, a move driven by mounting pressures on its energy imports after the Iran‑related conflict disrupted shipments through the Strait of Hormuz. The hike comes at a time when the country’s power grid is already strained by rising summer demand and limited domestic gas supplies, forcing policymakers to pass higher costs onto consumers. The price rise hits small businesses hardest; Rafiqul Islam, a 33‑year‑old shop owner in Dhaka, says the added expense threatens his profit margins. Neighbors echo his concerns, fearing that higher utility bills will erode disposable income and push many micro‑enterprises toward closure. Rural regions, already experiencing intermittent outages, may see more frequent load‑shedding as utilities grapple with tighter supply. Bangladesh’s heavy reliance on imported oil and gas—most of which transits the Hormuz corridor—exposes the nation to geopolitical volatility. The Iran war has curtailed shipments, tightening fuel availability for power plants and prompting the government’s tariff adjustment. Officials cite the need to cover rising generation costs and to deter excessive consumption during peak summer months. The tariff hike is likely to feed broader inflationary pressures, raising the cost of living and squeezing household budgets. For policymakers, the episode underscores the urgency of diversifying energy sources and accelerating renewable investments to shield the economy from external shocks and sustain growth.