Published :
Updated :
For all latest news, follow The Financial Express Google News channel.
Gas price for fertiliser factories has been hiked by 82.81 per cent to Tk 29.25 per cubic meter from the previous rate of Tk 16 per cubic meter with effect from December 1.
Bangladesh Energy Regulatory Commission (BERC) Chairman Jalal Ahmed announced the enhanced tariff at a press briefing at its office at IEB Bhaban in the city on Sunday.
The new gas tariff will be effective for fertiliser factories in the jurisdiction areas of Titas Gas Transmission and Distribution Company Ltd, Bakhrabad Gas Distribution Company Ltd, Jalalabad Gas Transmission and Distribution System Ltd, and Karnaphuli Gas Distribution Company Ltd.
The state-owned Petrobangla along with its subsidiary gas marketing and distribution companies earlier sought a 150 per cent hike in the natural gas tariff-from Tk 16 to Tk 40 per cubic metre-for government-owned fertiliser plants.
The commission held a public hearing over the proposals on October 6.
In their proposals, Petrobangla and its subsidiary companies argued that the proposed hike in the gas price for fertiliser factories is aimed at financing the import of additional liquefied natural gas (LNG) to cope with its chronic supply shortage.
These imports are intended to ensure uninterrupted gas supply to fertiliser factories, which have faced repeated shutdowns due to fuel shortage.
The revised tariff would enable Petrobangla to supply 250 million cubic feet per day (mmcfd) of gas during the peak fertiliser production season (October to March), 165 mmcfd in April and May, 175 mmcfd in June, and 130 mmcfd from July to September, Petrobangla stated.
The increased tariff would also help Petrobangla raise its annual LNG imports to 115 cargoes-up 6.48 per cent from the current 108.
Previously, the BERC raised the gas price by 259.55 per cent to Tk 16 per cubic meter from Tk 4.45 in 2022. However, the gas supply to factories did not increase afterwards.
After the 2022 gas price increase, fertiliser factories have struggled to pay their gas bills, it was learnt.
As of June 2025, they owed approximately Tk 10.39 billion as outstanding bills to various gas distribution companies.
Due to the gas tariff hike, the farmers will not have to count any additional costs as there is no proposal to raise fertiliser prices, said a top official of the Ministry of Agriculture.
Azizjst@yahoo.com