The Bangladesh Oil, Gas and Mineral Resources Corporation (Petrobangla) has proposed a significant hike in gas prices for the industrial sector. The proposal, submitted to the Bangladesh Energy Regulatory Commission (BERC) on Monday, suggests raising the price per unit from Tk 30.75 taka to Tk 75.72 -an increase of one and a half times.
The proposal follows the approval of the Energy Department and is now awaiting BERC’s decision. BERC Secretary Barrister Md. Khalilur Rahman Khan confirmed to Jago News that while the commission meeting for January has already taken place, a final decision will be made during the next commission meeting on February 2.
According to Petrobangla’s proposal, industries exceeding their approved gas load would face the new price on the excess consumption. Industries with promised new connections would be charged the previous rate for up to 50% of the approved load, with the new rates applying to the remaining usage.
Petrobangla’s proposal comes after a significant increase in gas consumption within the industrial sector. From November 2023 to October 2024, industries used 147.8 million cubic meters of gas beyond the approved load, while an additional 57.6 million cubic meters were consumed in captive production.
The rise in gas prices is being driven by the increasing cost of liquefied natural gas (LNG) imports. While Petrobangla buys domestically produced gas at an average cost of 6.07 taka per unit, the company faces a loss of over Tk 75 per unit for imported LNG. With an estimated expenditure of Tk 16,162 crore on LNG imports in the current fiscal year, Petrobangla aims to pass on the entire cost of LNG to the industrial sector.
This price hike follows a similar increase in February 2023, when industrial gas prices were raised by 82%, from Tk 11.98 to Tk 30 per unit. The government had previously issued an executive order to raise gas prices, a move that was controversial. In August 2023, the government revoked BERC’s executive power to raise electricity and gas prices without public hearings, further altering the pricing landscape.
The final decision on this proposal, which could significantly impact industrial energy costs, will be made after the February meeting of BERC.
