Energy sector seeks record Tk 1T subsidy

The power and energy sector has sought a record subsidy of nearly Tk 1 lakh crore for the 2026-27 fiscal year, more than double the Tk 43,000 crore allocated in the current fiscal year, according to official sources.

The sharp increase has been driven by rising LNG import costs, higher fuel prices, growing dependence on imported energy and the continued depreciation of the taka against the US dollar.

According to Energy Ministry officials, LNG subsidies alone are projected to exceed Tk 18,000 crore in the current fiscal year, up from Tk 6,000 crore. Of that amount, Tk 10,600 crore had been released through April, while another Tk 2,500 crore was needed for May.

"Petrobangla wants a subsidy of about Tk 5,000 crore for June," an official said.

Petrobangla has requested Tk 27,000 crore in subsidies for the first six months of FY2026-27 and estimates that its annual subsidy requirement could exceed Tk 50,000 crore.

According to officials, the estimate assumes continued uncertainty in global energy markets, including potential disruptions to LNG supplies from Qatar and Oman and elevated spot market prices.