Petrobangla proposes raising gas, CNG prices

Petrobangla has submitted a proposal to the Energy and Mineral Resources Division to hike gas prices for power generation and CNG to lessen the government’s subsidy burden.

According to the proposal, gas used in power plants will increase from Tk 16 to Tk 25 per cubic meter, while price of CNG (Compressed Natural Gas) may rise from Tk 43 to nearly Tk 65 per cubic meter.

Alongside Petrobangla, gas distribution companies have also applied to increase their distribution tariffs, citing operational losses.

Officials said the decision was prompted by rising Liquefied Natural Gas (LNG) prices in the international market, escalating import costs, and mounting financial pressure from subsidies.

The proposal is currently under review at the Energy and Mineral Resources Division. Once vetted, it will be forwarded to the Bangladesh Energy Regulatory Commission (BERC) for public hearings and final price determination.

Currently, BERC holds the legal authority to set and adjust gas prices in the country.

Sources confirmed that no price hike has been proposed for residential, commercial, or existing industrial customers. Earlier in April 2025, industrial gas prices were raised from Tk 30 to Tk 40 per cubic metre, while gas prices for fertilizer factories were increased from Tk 16 to Tk 29.25 in November the same year.

Distribution companies, including Titas, Karnaphuli, West Zone, Bakhrabad, Jalalabad, and Sundarban - argued that current tariffs fail to cover operational costs, threatening their financial viability.

BERC Chairman Jalal Ahmed said the commission has heard about the proposal but has not yet formally received it. Action will be taken as per rules once it arrives, he added.

According to Petrobangla data, the average purchase price of gas in FY 2025-26 stood at Tk 31.65 per cubic meter against an average selling price of Tk 23.63, creating a deficit of Tk 8.02 per cubic metre.

Volatility following Middle East conflicts further drove up purchase prices between April and June, expanding the financial deficit to around Tk 16,500 crore.

Energy experts emphasized that over-reliance on costly imported LNG is driving up prices, reiterating the urgent need to boost domestic gas exploration and production to ensure energy security.

-SA