Distributors propose 150% gas price hike for industries

A steep gas price increase is on the table as six gas distribution companies, including Petrobangla, push to more than double rates for industrial use. 

The Bangladesh Energy Regulatory Commission (BERC) kicked off a public hearing at 10:00am Wednesday at Banglamotor’s BIAM Auditorium to weigh the proposal.

Earlier this year, Petrobangla pitched a hike in wholesale gas prices, prompting companies like Titas Gas to follow suit with retail-level increases. 

Their plan is to jack up industrial factory gas prices from Tk 30 to Tk 75.72 per unit and captive power rates from Tk 31.50 to Tk 75.72—a jump of over 150 per cent. 

The companies argue that without this adjustment, the government faces a massive subsidy bill to cover imported liquefied natural gas (LNG) costs.

Bangladesh’s daily gas demand stands at 4,000 million cubic feet, with domestic fields meeting roughly half and imports covering 25 per cent via LNG. 

Petrobangla’s proposal notes that LNG import costs hit Tk 65.70 per cubic metre, ballooning to Tk 75.72 with VAT, taxes, and fees. 

They warn that dwindling domestic supply—especially straining industry and captive power—means reliance on LNG will only grow.

BERC’s Technical Evaluation Committee is now scrutinising the proposals, which followed Petrobangla’s directive and subsequent submissions from the six distributors. 

The hearing marks a critical step in deciding whether industries will bear the brunt of aligning gas prices with import realities—or if subsidies will shield them from the spike.