The Bangladesh Energy Regulatory Commission (BERC) has increased the price of gas supplied to fertiliser factories by 83 percent, raising the rate by Tk 13.25 per cubic metre.
The new price has been set at Tk 29.25 per cubic metre, up from the current Tk 16.00, and will take effect from December.
The announcement was made on Sunday at a press conference at the BERC office in Dhaka.
The hike follows a public hearing held on October 6 after applications were submitted by Titas Gas, Bakhrabad, Jalalabad and Karnaphuli distribution companies.
During the hearing, Petrobangla and the distribution companies proposed raising the price to Tk 40 per cubic metre, while BERC’s technical committee recommended Tk 30.
Petrobangla argued that a price increase would allow the import of seven additional LNG cargoes specifically for supply to fertiliser factories. Officials acknowledged that the gas price hike would inevitably push up fertiliser production costs.
At present, producing one kilogram of urea costs about Tk 38, while it is sold in the market at Tk 27, requiring a government subsidy of Tk 13 per kg. With the higher gas tariff, the subsidy burden is expected to rise unless retail fertiliser prices are adjusted.
At the press conference, BERC Chairman Jalal Ahmed said, “The hike in gas price will definitely enhance Petrobangla’s income. As a result, the agency will be able to import seven more LNG cargoes.”
He added that the move will also contribute to more domestic fertilizer production by the state-run factories.
He said it will ensure 140 million cubic metre gas supply to four fertilizer factories. As a result, local production will rise to 18 lakh tonnes per year, which was 11.15 lakh tonnes in 2024-25 fiscal year.
In reply to a question, he said as far as he knew the government has no plan to raise fertilizer price despite the price hike.
According to BERC, the government has provided Tk 6,000 crore subsidy on Petrobangla’s LNG import during 2025-26 fiscal year, while another Tk 1,075 crore was given from Energy Security Fund.