The Bangladesh Energy Regulatory Commission (BERC) has scheduled a public hearing for October 6, 2025 to review a proposal to increase gas prices for fertilizer production.
The hearing will be held at the BIAM Auditorium in Dhaka, according to officials.
Petrobangla has submitted a proposal to raise the gas price for fertilizer factories from Tk 16 per cubic meter to Tk 40. However, the proposal did not clarify how this would impact production costs or its wider socio-economic effects.
Petrobangla argued that with the price hike, it would be able to ensure smooth gas supply of 250 million cubic feet (mmcfd) per day during the October–March period.
Supply would then be rationed at 165 mmcfd in April–May, 175 mmcfd in June, and 130 mmcfd in July–September. Currently, fertilizer plants receive only 66 mmcfd.
The state-run company has plans to import 108 LNG cargoes in 2025, and said that with the price adjustment, it could afford to bring in seven more cargoes to boost fertilizer production.
Bangladesh has six fertilizer factories, but the aging Ashuganj Fertilizer Factory, established in 1981, remains shut due to excessive gas consumption. The other five plants require around 250 mmcfd to run at full capacity.
Petrobangla’s proposal shows that importing 115 LNG cargoes would cost Tk 55,032.3 crore, while the additional revenue from higher gas prices would be Tk 44,342.74 crore—leaving a deficit of Tk 8,355 crore.
Factoring in a government subsidy of Tk 6,000 crore, the net shortfall would still be Tk 2,335.7 crore. The blended cost of gas per cubic meter is estimated at Tk 28.78, against an average selling price of Tk 24.56, meaning a loss of Tk 4.22.
For FY2025–26, Petrobangla projects that 115 LNG cargoes would supply an average of 932.6 mmcfd, at a cost of Tk 57,928 crore. In contrast, local gas fields are expected to deliver nearly twice as much—1,800 mmcfd—at just Tk 5,678 crore. Meanwhile, local production continues to decline—from 2,800 mmcfd in earlier years to just 1,783 mmcfd as of September 13.