Bangladesh decides in principle to implement new gas pricing structure

Petrobangla has submitted a proposal to the Bangladesh Energy Regulatory Commission (BERC) to revise gas prices for industrial and captive power users.

Instead of a fixed rate, the new pricing structure will be based on the actual cost of imported liquefied natural gas (LNG).

Once BERC accepts the proposal, industrial and captive power users will have to pay Tk 75.72 per cubic metre for their gas use beyond the sanctioned load. At present, they pay a flat Tk 30.75 per cubic metre even if they breach their sanctioned load.

However, new industrial and captive connections will have to pay Tk 75.72 per cubic metre throughout, according to domestic media reports.

Those who got the primary approval for new connections will have to pay 50 per cent of their bills of sanctioned load at the existing rate and the rest at the new rate.

The new gas price will be determined by the cost of LNG imports calculated on the average expenditure of the previous three months' total costs, including operational, transmission and distribution charges, as well as contributions to gas development, energy security and research funds. A 15-per cent value-added tax would be imposed too.

Between July and September 2024, Petrobangla imported a total of 1,726 million cubic meters of LNG for Tk 10,979 crore. The per cubic meter cost of LNG during that period was Tk 63.58, and after including all additional charges, the final cost per unit reached Tk 75.72.

However, the government had earlier announcement that it would not fix gas prices arbitrarily bypassing BERC like the earlier Awami League government used to.

ALCHEMPro News Desk (DS)