Petrobangla has submitted a proposal to revise gas prices from Tk30.75 to Tk75.72 per cubic metre for industrial and captive power users, as it is a condition of the International Monetary Fund (IMF) for releasing the 4th tranche of the confirmed $4.7 billion loan before the national budget, despite strong opposition from various industrial bodies.
Petrobangla has recently submitted a proposal to the Bangladesh Energy Regulatory Commission (BERC) to raise the gas tariff, noting that the demand for natural gas is constantly increasing at a substantial rate. However, it is not possible to increase the supply of gas to meet the demand from local sources, necessitating an increase in LNG imports.
According to Petrobangla, the current import price of LNG per cubic metre is about 65-70 taka. Presently, domestic gas production accounts for about 75 per cent of the gas supplied, while imported LNG accounts for about 25 per cent.
"In the 2023-24 fiscal year, it was possible to supply an average of 2,493 MMCFD of gas against the normal demand of 3,800-4,000 MMCFD. However, there is an average daily deficit of about 1,000 to 2,000," the letter reads.
Justifying the price hike proposal, Petrobangla stated that if 28 more cargoes are imported under long-term contracts and 29 more from the spot market from January 2024 to June 2025, totalling 57 cargoes, the estimated deficit will be Tk16,162.71 crore. If 115 cargoes of LNG are imported in 2025, there will be a deficit of about Tk 22,315 crore according to the current gas price, which will have to be subsidised.
"This deficit reduction will primarily be achieved through the repricing of existing gas prices in the industrial and captive categories, as well as through potential new gas connections and load increases," Petrobangla said.
In the case of potential new gas connections in the captive category, the total cost of LNG import for consumers is the current price of natural gas at Tk31.50. However, Petrobangla's proposed price is Tk75.
As per the proposal, those who received primary approval for new connections will have to pay 50 per cent of their bills for sanctioned load at the existing rate and the rest at the new rate.
In December 2025, the IMF team, in a meeting with the Ministry of Finance and Ministry of Power, Energy and Mineral Resources, suggested that Bangladesh should raise energy tariffs and cut subsidies to become a self-reliant country.
The IMF mission continued consultations until December 17 as their agenda includes reviewing nine critical areas, with a focus on aligning energy tariffs with actual supply costs as part of a plan to phase out subsidies in the energy sector within three years.
Petrobangla's price hike proposal to the Bangladesh Energy Regulatory Commission includes a fresh policy stating that the gas price will be determined by the cost of LNG imports calculated on the average expenditure of the previous three months' total costs, including operational, transmission and distribution charges, as well as contributions to gas development, energy security, and research funds. A 15 per cent VAT would also be imposed.
In its proposal, BERC mentioned that between July and September 2024, Petrobangla imported 1,726 million cubic metres of LNG worth Tk10,979 crore. The per cubic metre cost of LNG during that period was Tk63.58, and after including all additional charges, the final cost per unit reached Tk75.72.
Meanwhile, in a city discussion, factory owners raised concerns over the gas tariff hike issue, stating that if implemented, "this move will impact industrial growth," said Kutubuddin Ahmed, chairman of Envoy Textiles. "It will affect the industry's competitiveness, especially if anyone wants to increase capacity or set up a new unit." He noted that no other nation in the world runs its industries solely on self-generated power, except Bangladesh.
