The government has decided to double gas prices for new connections in industries and captive power plants. 

Entrepreneurs will now need to pay over twice the current rates for gas in new factories.

A proposal has already been sent to the Bangladesh Energy Regulatory Commission (BERC) through Petrobangla. 

Currently, industrial consumers pay Tk 30 per cubic meter for gas, while captive power users pay Tk 30.75. The average import cost of LNG ranges from Tk 60 to Tk 65 per cubic meter.

Business leaders have expressed concerns, saying that despite promises of uninterrupted gas supply, many factories remain idle due to shortages. They warned that the significant price hike would halt industrial investment.

Under the new proposal, for new industrial and captive connections, gas prices will match the cost of imported LNG. However, those with pending connection approvals will pay 50% at the current rate and 50% at the LNG rate. For existing connections, any additional load will also be charged at the LNG price.

The Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) President, Hatem Ali, criticized the development, underscoring the unfair competition it could create. 

He warned that new entrepreneurs would struggle to survive, leading to a slowdown in investment.

Currently, Petrobangla supplies around 2,850 million cubic feet of gas daily, of which 850 million cubic feet come from imported LNG. In the 2023-24 fiscal year, the average gas cost was Tk 24.38 per cubic meter, while Petrobangla sold it at Tk 22.87.

In February 2023, gas prices were increased by 82% through an executive order, raising industrial rates from Tk 11.98 to Tk 30 per cubic meter and captive rates from Tk 16 to Tk 30.75.

BDST: 1150 HRS, JAN 7, 2025
MSK/SMS