Bangladesh Energy Regulatory Commission (BERC) is poised to raise gas prices for new industries, with rates expected to climb from Tk30 to a range of Tk40–45 per cubic metre.
Official announcement is anticipated in April, according to sources within the regulatory body.
A senior BERC official indicated that a price hike is almost certain, though the final decision on the exact amount and whether it will affect existing industries remains unresolved.
Several pricing models are under discussion, including one that could allow reductions if global gas prices decline.
Talks also continue regarding the impact on existing industrial consumers.
Petrobangla has proposed maintaining the existing tariff for current consumers while increasing rates for new and approved consumers.
Under this proposal, approved but yet-to-be-connected industrial users would pay half their gas bill at the current rate, with the remainder charged at Tk75.72 per cubic metre.
Additionally, the price for new industries and captive power plants would rise from Tk30 and Tk31.75 to Tk75.72.
Furthermore, any gas usage exceeding the approved allocation for existing industries would also be charged at the higher rate.
On 26 February, BERC held a hearing on Petrobangla’s proposal, which argued that without a tariff increase, the company would face an annual deficit of approximately Tk16,000 crore.
The proposal has drawn widespread criticism from industry leaders, who vehemently opposed the two-tier pricing model, arguing it would create an uneven playing field.
Despite the backlash, sources suggest that both the executive branch and BERC are leaning towards approving the price hike.
When approached for comment, BERC Chairman Jalal Ahmed declined to confirm whether the hike would proceed.
However, he acknowledged that if an increase were to occur, an announcement before Eid would be inappropriate.
He emphasised that no final decision had yet been made, noting that government subsidy policies also factor into the deliberations.
Business leaders have warned that implementing a dual-pricing system would distort competition.
During the hearing, several stakeholders argued that maintaining the current tariff for existing industries while imposing higher rates on new ones would create an unfair market structure.
The BERC chairman assured that all concerns raised during the hearing would be thoroughly examined before reaching a decision.
Representatives from the Consumers Association of Bangladesh (CAB), various business groups, and industry leaders criticised both BERC and Petrobangla during the hearing, questioning the necessity of the proposed hike.
The session witnessed unprecedented protests from industrial stakeholders, who denounced the regulatory body’s handling of the matter.
BKMEA President Hatem Ali strongly opposed the proposal, urging BERC to halt the hearing altogether.
“Raising the price from Tk30 to Tk75 will deter new investments and devastate the industrial sector. We hope you will not conspire against the industry,” he said.
BTMA President Shawkat Aziz Russell echoed these concerns, stating that many businesses were already struggling with existing costs.
“We are trapped in our investments. We cannot shut down due to bank loans. If we could, we would have closed long ago. The current rate of Tk30 is already high. We are not even receiving gas consistently, yet you are proposing a price hike. Are you trying to hand over our businesses to India? Please, do not destroy our industries,” he pleaded.
Petrobangla sources gas from multiple suppliers, paying the state-owned Sylhet Gas Fields Company and Bangladesh Gas Fields Company approximately Tk28 per thousand cubic feet, while Bapex receives around Tk112 per thousand cubic feet.
International energy giant Chevron Bangladesh supplies domestic gas at a rate of $2.76 per thousand cubic feet, while Tullow charges $2.31.
Imported liquefied natural gas (LNG) presents an even steeper cost.
In the first seven months of the 2024–25 fiscal year, Qatar’s LNG deliveries averaged $10.66 per thousand cubic feet, while Oman’s imports cost $10.09 per thousand cubic feet.
Energy experts warn that decades of stagnation in gas exploration have made Bangladesh increasingly reliant on costly imports.
Without urgent investments in domestic exploration, the situation could worsen in the coming years.