Bangladesh closes universities to save power amid energy crisis and fuel shortage

Finance Saathi Team

    09/Mar/2026

  • Bangladesh has ordered all public and private universities to close from March 9, advancing Eid holidays to conserve electricity and fuel amid a growing energy crisis.

  • The government says university closures will reduce electricity use from hostels, laboratories and classrooms while also cutting traffic congestion and fuel consumption.

  • Gas shortages have already forced four state-run fertiliser plants to halt operations as Bangladesh scrambles to secure LNG imports at higher global prices.

Bangladesh has taken an extraordinary step to manage its growing energy crisis by closing all public and private universities earlier than scheduled, advancing the Eid al-Fitr holidays in order to conserve electricity and fuel.

The measure came into effect on Monday, March 9, 2026, as the government implemented emergency steps to reduce energy consumption across the country.

Officials said the decision is part of a broader national effort to manage electricity shortages and fuel supply challenges, which have been intensified by the ongoing geopolitical conflict in West Asia that has disrupted global energy markets.

The government believes that shutting down universities temporarily will significantly reduce electricity consumption and fuel usage, helping ease pressure on Bangladesh’s already strained power system.


Universities Closed Nationwide

Authorities confirmed that the decision applies to all public and private universities across Bangladesh.

The move effectively advances the Eid al-Fitr holiday period, allowing campuses to shut down earlier than originally planned.

Officials explained that university campuses are major consumers of electricity, particularly due to the operation of:

  • Residential dormitories and hostels

  • Classrooms and administrative buildings

  • Research laboratories

  • Air conditioning and cooling systems

  • Campus transportation and facilities

By closing campuses earlier, the government expects to reduce electricity demand significantly during a time when the country is struggling to maintain stable power supplies.


Reducing Traffic and Fuel Consumption

In addition to saving electricity, officials said the closure would also reduce traffic congestion, particularly in major urban areas.

Large university campuses generate significant daily commuter traffic, including:

  • Students traveling to classes

  • Faculty and administrative staff commuting to campuses

  • Public transport usage around university areas

By suspending academic operations, authorities expect to reduce road traffic and fuel consumption, which is another important component of the government’s energy conservation strategy.

Fuel savings are particularly important as Bangladesh faces increasing uncertainty over petroleum supply and rising global prices.


Schools Already Closed for Ramadan

The impact of the decision is even broader because government and private schools in Bangladesh are already closed for the Islamic holy month of Ramadan.

With the new decision affecting universities as well, most educational institutions across the country will remain closed during this period.

This nationwide pause in educational activities is expected to significantly reduce electricity demand from institutional facilities.

Authorities believe that the temporary shutdown will help the country stabilise its power supply while it navigates the current energy crisis.


Energy Crisis Linked to West Asia Conflict

Bangladesh’s energy challenges have intensified in recent weeks due to disruptions in global energy markets triggered by the ongoing conflict in West Asia.

The geopolitical tensions have driven sharp increases in global crude oil and natural gas prices, while also creating uncertainty in energy supply chains.

For a country like Bangladesh, which depends heavily on imported energy, these developments have had a significant impact.

Bangladesh imports a large portion of its liquefied natural gas (LNG), petroleum products, and other energy resources from international markets.

As prices rise and supply becomes uncertain, the government has been forced to implement strict energy management measures.


Heavy Dependence on Imported Energy

Bangladesh relies on imports for around 95 percent of its energy needs, making it highly vulnerable to fluctuations in global fuel prices and supply disruptions.

This heavy dependence means that international events, such as geopolitical conflicts or shipping disruptions, can quickly affect domestic energy availability and economic stability.

The recent surge in global energy prices has placed significant pressure on the country’s import bills and foreign exchange reserves.

To manage these challenges, the government has been taking a range of austerity measures aimed at reducing energy consumption.


Fuel Sales Restricted After Panic Buying

Another sign of the severity of the crisis emerged when the government imposed daily limits on fuel sales.

The restrictions were introduced after panic buying and stockpiling of fuel began to occur across the country.

Consumers and businesses rushed to secure fuel supplies amid fears of shortages, which further strained the already tight supply situation.

By limiting fuel purchases, authorities aim to:

  • Prevent hoarding

  • Ensure fair distribution of fuel supplies

  • Maintain sufficient reserves for essential services

These measures are part of the government’s broader strategy to stabilise energy availability across the country.


Coaching Centres and Foreign Curriculum Schools Also Affected

The government has expanded its austerity measures beyond universities.

Authorities have also asked foreign-curriculum schools and private coaching centres to temporarily suspend operations.

These institutions often operate air-conditioned classrooms and digital learning facilities, which consume substantial amounts of electricity.

By suspending these activities during the crisis period, the government hopes to further reduce electricity demand across the education sector.


Gas Shortage Forces Fertiliser Plants to Shut Down

The energy crisis has already begun affecting industrial operations in Bangladesh.

Officials confirmed that four of the country’s five state-run fertiliser factories have been forced to halt operations due to severe gas shortages.

Natural gas is a key input in fertiliser production, but with supplies limited, the government has chosen to redirect available gas to power plants.

This decision was made to prevent widespread electricity outages, which could have severe economic and social consequences.

While this step helps stabilise power supply, it also creates challenges for the agricultural sector, which depends heavily on fertiliser availability.


Bangladesh Turning to LNG Spot Market

To address the supply gap, Bangladesh has been purchasing liquefied natural gas (LNG) from the global spot market.

However, spot market LNG prices have surged significantly due to the global energy supply disruptions.

Buying LNG at higher prices increases the financial burden on the government and the country’s energy utilities.

Officials are also exploring options to secure additional LNG cargoes to ensure that power plants continue to operate without interruptions.

These purchases are essential to maintain stable electricity generation during the crisis.


Government Focused on Stabilising Energy Supply

A senior official from Bangladesh’s Energy Ministry emphasised that the government is taking all possible measures to manage the crisis.

According to the official, the government’s priority is to reduce energy consumption while ensuring stability in power supply and fuel imports.

Authorities are working on multiple fronts, including:

  • Managing electricity demand

  • Securing energy imports

  • Preventing fuel shortages

  • Maintaining power generation

These coordinated efforts aim to protect the country from severe energy disruptions during a period of global uncertainty.


Broader Economic Concerns

The energy crisis also raises concerns about the broader economic impact on Bangladesh.

Higher fuel and energy costs can affect multiple sectors, including:

  • Transportation

  • Manufacturing

  • Agriculture

  • Electricity generation

Rising energy costs can also contribute to inflation, increasing the cost of goods and services across the economy.

For developing economies like Bangladesh, maintaining stable energy supply and affordable fuel prices is essential for economic growth and social stability.


Global Energy Market Volatility

The situation in Bangladesh reflects a broader global trend.

The West Asia conflict and rising geopolitical tensions have triggered sharp fluctuations in global energy markets.

Oil prices have surged above $110 per barrel, while natural gas markets have also experienced volatility.

Countries that rely heavily on imported energy are particularly vulnerable to these changes.

Governments across the world are now exploring strategies to diversify energy sources and improve energy security.


What Happens Next

As Bangladesh navigates this challenging period, several key factors will influence the situation:

  • Stability of global energy markets

  • Availability of LNG supplies

  • Developments in the West Asia conflict

  • Domestic energy demand management

If global energy prices remain elevated, Bangladesh may need to continue implementing conservation measures in the coming months.


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