Bangladesh hikes electricity prices citing impacts from US-Israel war on Iran

What happened

Regional source The New Arab reports that Bangladesh increased electricity prices by 16%, attributing the move to pressures on state finances caused by the ongoing US-Israel war on Iran. The announcement came two days after fuel price increases, including kerosene and petrol, with diesel prices unchanged.

Bangladesh relies heavily on energy imports, with nearly half of its electricity generation capacity derived from natural gas, coal, oil, and diesel. The government is also nearing operational readiness of its first nuclear power plant, which has completed the first phase of uranium fuel loading, a strategic shift as domestic energy demand rises, especially during Dhaka’s hot summer months.

The price hikes add strain to a population already facing significant inflation, which reached 9.04% in April. Power supply disruptions have been reported in rural areas while major cities have largely maintained more stable grids. Bangladesh’s authorities are seeking $2 billion in loans from multilateral donors to address energy security challenges created in part by fuel price surges linked to the conflict around Iran.

Known from the source

• Bangladesh raised electricity prices by 16% as of early June 2026.
• Kerosene prices rose from 130 to 135 taka per litre; petrol prices rose from 135 to 140 taka per litre; diesel prices remained unchanged.
• The increase was linked by officials to financial pressures related to the US-Israel war on Iran.
• Bangladesh’s first nuclear power plant is nearing readiness, with uranium fuel loading begun.
• Bangladesh’s electricity generation capacity is approximately 44% natural gas, 24% coal, and 24% oil and diesel.

What remains unclear

Bangladesh is simultaneously engaged in a $5.7 billion IMF assistance program initiated in 2023 and is negotiating a new IMF aid package amid the rising economic pressures. These developments underscore how the war's indirect impacts are reshaping energy policy, economic stability, and infrastructure projects in countries outside the immediate conflict zone.

What remains unclear: Confirm that Bangladesh's government officially attributes the electricity and fuel price hikes specifically to the US-Israel war on Iran. Verify inflation figures, fuel price changes, and nuclear plant status from official Bangladesh sources or IMF statements. Check statements from Bangladesh Energy Regulatory Commission and Bangladesh Power Development Board for accuracy. Clarify any attribution language to ensure no implied blame beyond official statements.

Evidence note

Outside Brief has kept this brief source-led and attributed. Claims should be read alongside the original source linked below.

Original source: The New Arab. Open the source.