Written by The Banking Post
The Bangladesh Energy Regulatory Commission (BERC) will hold a public hearing on October 6 to review Petrobangla’s proposal to sharply raise gas tariffs for state-run fertiliser factories.
The state-owned company has asked for a 150 per cent hike — from Tk 16 to Tk 40 per cubic metre — to finance higher imports of liquefied natural gas (LNG). Officials said the move would allow Petrobangla to bring in seven additional LNG cargoes annually, raising total imports to 115 cargoes, up 6.5 per cent from the current 108.
Even with the proposed increase, Petrobangla expects a deficit of Tk 83.55 billion if extra imports are made, which it hopes to cover through government subsidies. The blended cost of gas would also rise to Tk 28.78 per cubic metre from the current Tk 24.56.
Petrobangla’s subsidiaries — including Titas Gas, Bakhrabad Gas, Jalalabad Gas, Sundarban Gas, Pashchimanchal Gas, and Karnaphuli Gas — have also filed tariff hike proposals.
BERC has invited individuals and institutions to register by September 28 and submit written statements by September 30 ahead of the hearing at the BIAM auditorium in Dhaka.
Four major fertiliser plants — Jamuna, Ashuganj, Chittagong Urea, and Karnaphuli — remain shut due to gas shortages, though their combined requirement stands at 212 mmcfd. Fertiliser factories also owe Tk 10.39 billion in unpaid bills to gas distribution companies as of June.
Bangladesh’s urea demand fell to 1.56 million tonnes in FY25, down from 1.75 million tonnes a year earlier. Meanwhile, the government spent over US$1 billion last fiscal year on importing non-urea fertiliser.
In June 2022, BERC had raised fertiliser gas tariffs by 260 per cent, while the joint venture Karnaphuli Fertilizer Company Ltd (KAFCO) recently saw its tariff revised to Tk 30 per cubic metre.
