The ongoing military conflict in the Middle East and fears of disruption along the strategic Strait of Hormuz have sent global oil and natural gas prices soaring, delivering a direct blow to Bangladesh’s economy. Driven by rising international prices, the value of Letters of Credit (LCs) opened for importing fuel oil and petroleum products jumped by 65% year-on-year in the first quarter (July–September) of the 2026–27 fiscal year.
According to updated data from Bangladesh Bank, energy import LCs opened during the first three months of FY 2026–27 reached $3.7 billion, up from $2.28 billion in the same period of the previous fiscal year. While the physical volume of imported fuel remained largely unchanged, the sharp surge in expenditure was driven entirely by higher market prices and inflated freight costs.
