Skip to content

South Asian Nations Switch to Expensive Diesel Due to LNG Supply Crunch

  • Pakistan, Bangladesh turn to diesel for power generation
  • War in Ukraine, sanctions have exacerbated supply shortage

Pakistan and Bangladesh are turning to expensive and dirty diesel fuel to generate electricity as the nations struggle to secure shipments of liquefied natural gas amid a supply crunch intensified by Russia’s invasion of Ukraine.

Pakistan’s diesel-fired power generation rose to the highest level in at least seven years in January, while LNG-based output dipped to the lowest in almost two years, according to government data compiled by Arif Habib Ltd. The two fuels each generated about 7% of the South Asian country’s electricity in January.