Energy and gas shortages have disrupted production for most of Bangladesh's garment manufacturers, though some factories with independent power sources have maintained operations. The 4A Yarn Dyeing factory in Savar, which supplies major retailers including Walmart, Gap, and Next, has continued production using a combination of solar panels and internal gas and diesel generators. The company reported that approximately 40% of its power is currently supplied by solar energy.
The shortages follow a period of increased energy costs and limited fuel availability. A recent survey of 134 knitwear factories conducted since late August 2026 found that 78% of participants have partially halted production due to power issues. Additionally, 55% of the surveyed factories reported that international buyers have canceled or reduced their orders.
On Monday, September 21, 2026, the Bangladeshi government increased fuel prices by as much as 17.4%. Officials stated the price hike was necessary due to rising global oil prices and shipping costs linked to Middle East conflict. These costs have led some manufacturers to use air freight or offer price discounts to meet delivery deadlines despite the power interruptions.
The scale of the financial impact is significant for individual businesses; 4A Yarn Dyeing reported that its monthly fuel bill has increased by 5 million taka (approximately $40,950). This represents a 2% to 3% rise in total production costs. Workers and business owners in the sector are noticing these changes through reduced order volumes, thinner profit margins, and the physical reality of electricity outages that stall machinery and delay shipments.
Knock-on effects include a potential loss of market share to regional competitors like India and Vietnam, where energy supplies are reported to be more stable. The Bangladeshi power minister stated on September 14, 2026, that high import costs for liquefied natural gas are slowing overall industrial growth and draining funds from development projects. To mitigate future outages, 4A Yarn Dyeing plans to install industrial-scale batteries to provide several hours of backup power, though company leadership noted that many other factories lack the capital to invest in similar infrastructure. No specific date for the restoration of full power stability has been reported.