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A public hearing on the proposals for a sharp increase in the gas tariffs for state-run fertiliser factories will be held today (Monday), amid growing concerns over energy costs and its supply shortfall.
The Bangladesh Energy Regulatory Commission (BERC) has scheduled the hearing at the BIAM Foundation auditorium in Dhaka from 10:00 am to 5:00 pm, official sources said.
The session will begin with a presentation from the state-owned oil, gas, and mineral corporation Petrobangla, which is seeking 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 proposed increase is aimed at financing the import of additional liquefied natural gas (LNG) to cope with its chronic supply shortage.
Petrobangla's proposal is backed also by its subsidiary gas marketing and distribution companies, including Titas Gas Transmission and Distribution Company, Bakhrabad Gas Distribution Company Ltd, Jalalabad Gas Transmission and Distribution System Ltd, Sundarban Gas Company Ltd, Pashchimanchal Gas Company Ltd, and Karnaphuli Gas Distribution Company Ltd.
Each of the companies has submitted separate but aligned proposals to BERC in support of the tariff revision, it was learnt.
Ahead of the hearing, the BERC invited stakeholders to register by 28 September and submit written comments by 30 September. The regulator is expected to weigh public feedback alongside technical and financial justifications. According to officials, Petrobangla plans to import at least seven additional LNG cargoes using the proceeds to be gained from the proposed tariff hike.
These imports are intended to ensure uninterrupted gas supply to fertiliser factories, which have faced repeated shutdowns due to fuel shortage.
If approved, 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.
The increased tariff would also help Petrobangla raise its annual LNG imports to 115 cargoes-up 6.48 per cent from the current 108.
Even with the hike, the company anticipates a deficit amounting to Tk 83.55 billion if the additional cargoes are procured.
Petrobangla expects this shortfall to be covered through government subsidies.
The blended cost of gas -factoring in domestic and imported sources-would rise to Tk 28.78 per cubic metre from the existing rate of Tk 24.56, reflecting the higher share of LNG in the energy mix.
This is not the first time fertiliser factories have faced tariff adjustments, it was learnt.
In June 2022, the BERC raised the gas tariff for the state-run fertiliser units by 259.55 per cent to Tk 16 per cubic metre from Tk 4.45.
Despite the increase, fertiliser factories have struggled to pay their gas bills. As of June 2025, they owed approximately Tk 10.39 billion to various gas distribution companies.
Petrobangla submitted the latest tariff hike proposal after consultations with the Bangladesh Chemical Industries Corporation (BCIC), which operates the state-owned fertiliser factories, and the Ministry of Industries.
Currently, four fertiliser plants-Jamuna Fertilizer Factory, Ashuganj Fertilizer and Chemical Company Ltd (AFCCL), Chittagong Urea Fertilizer Ltd (CUFL), and Karnaphuli Fertilizer Company Ltd (KAFCO)-remain shut for want of gas. Their combined gas requirement is estimated at 212 mmcfd.
Bangladesh's demand for urea fertiliser stood at 1.56 million tonnes in FY2024-25, down from 1.748 million tonnes in the previous fiscal year.
To meet the demand for non-urea fertiliser, the government spent US$1.04 billion last year.
In a related move, the government recently raised gas tariff to Tk 30 per cubic metre for the KAFCO, a joint venture fertiliser company.
Azizjst@yahoo.com