Bangladesh Energy Regulatory Commission (BERC) has finalised a revised gas tariff structure that maintains current prices for existing industrial units while setting a higher rate for new connections, BERC Chairman Jalal Ahmed said.
While he refrained from disclosing the exact figure of the increase, the BERC chief said the new rates would be officially announced on Sunday (13 April).
He assured that no hike would be imposed on existing industrial connections.
According to sources within BERC, current industrial users are billed at Tk30 per cubic metre, a rate that will remain unchanged.
However, new industrial units may face rates between Tk40 and Tk45 per cubic metre.
Petrobangla had proposed a tiered pricing structure—retaining the existing rates for current consumers (Tk30 for industrial gas and Tk31.75 for captive power) but significantly increasing the tariff for new and promised connections.
For these categories, Petrobangla suggested a rate of Tk75.72 per cubic metre, while offering a transitional rate for approved-but-not-yet-connected consumers: Half at the old rate and half at the new.
The proposal, presented during a public hearing on 26 February, faced severe backlash from industry leaders and trade bodies who argued that such a dual-pricing model would distort competition and burden new investments.
Dr Shamsul Alam, energy adviser to the Consumers Association of Bangladesh (CAB), said the proposed hike is unjustified. "We demonstrated in the hearing that the price could be reduced. The previous government had escalated exploitative expenditures, and if this hike proceeds without consumer safeguards, it effectively legitimises those excesses."
He also asserted that implementing two separate tariffs for the same category of consumers violates legal norms and hinted at the possibility of a legal challenge.
Petrobangla, which sources gas from multiple providers, claims the hike is necessary to offset an anticipated annual deficit of Tk16,000 crore.
It purchases gas from state-owned companies—such as Sylhet Gas Fields Ltd and Bangladesh Gas Fields Company—at around Tk28 per thousand cubic feet (MCF), and from BAPEX at approximately Tk112 per MCF.
Multinational company Chevron receives $2.76 per MCF, while Tullow is paid $2.31 per MCF.
Imported liquefied natural gas (LNG), however, significantly raises the cost. In the first seven months of FY 2024–25, LNG from Qatar averaged $10.66 per MMBtu, and from Oman $10.09. Decades of stagnation in domestic exploration have pushed the country further into dependency on costly imports.
Energy experts warn that unless exploration activities are urgently accelerated, the nation may face an even graver crisis in the near future.
