The interim government has no plan to raise petroleum fuel tariffs despite fears of global price hikes stemming from the ongoing Iran-Israel conflict, said Power and Energy Adviser Muhammad Fouzul Kabir Khan.
Responding to media queries on the sidelines of a gas sales agreement (GSA) signing between Jalalabad Gas Transmission and Distribution System Limited (JGTDSL) and LafargeHolcim Bangladesh PLC, the adviser stated that the impact of the war would depend on its duration.
“We do not anticipate any immediate price hikes. The government has short-term fuel supply arrangements — including six-month contracts for fuel oil and long-term LNG deals. Moreover, Bangladesh sources fuel from countries like Singapore and Malaysia, reducing dependency on the Middle East,” he said.
He added that if necessary, the government would consider reducing the profit margin of the Bangladesh Petroleum Corporation (BPC) to keep fuel prices stable.
Speaking at the signing ceremony as the chief guest, Dr. Khan welcomed the agreement, calling it a “new horizon” in the country’s energy landscape. He emphasized the need for cost-reflective energy pricing to ensure long-term energy security and reduce government subsidies. “No agreement will be approved without appropriate pricing,” he asserted.
The adviser also noted that gas pressure at LafargeHolcim’s Chhatak plant would be higher than in urban industrial areas due to its favorable location. He mentioned that previous issues in the agreement had been resolved, and two key changes were incorporated in the new deal: updated gas pricing and inclusion under the regulatory framework of the Bangladesh Energy Regulatory Commission (BERC).
The signing ceremony, held at Bidyut Bhaban in Dhaka, was attended by Executive Chairman of Bangladesh Investment Development Authority (BIDA) Ashiq Chowdhury, Energy and Mineral Resources Division (EMRD) Secretary Mohammad Saiful Islam, Michael Miller, Head of Delegation of the European Union to Bangladesh, Switzerland Ambassador to Dhaka Reto Renggli, and Spain Ambassador to Dhaka Gabriel Sistiaga Ochoa de Chinchetru, Petrobangla Chairman Md Rezanur Rahman, and senior officials from JGTDSL, Petrobangla, EMRD, BIDA, and LafargeHolcim.
Dr. Khan expressed gratitude to the three ambassadors for their support in finalizing the agreement, noting that it would encourage further foreign investment in Bangladesh’s energy sector.
BIDA Executive Chairman Ashiq Chowdhury emphasized the importance of existing foreign investors in attracting new investment. “LafargeHolcim highlighted the long-standing challenges they’ve faced. We tried to resolve issues affecting large investors. While global FDI figures are declining, most investments now come from reinvestment by existing companies,” he said.
EMRD Secretary Mohammad Saiful Islam called the event a symbol of long-term trust and partnership. “This agreement is not just a signing, but a commitment. Under it, we will supply 16 million cubic feet of gas per day to the plant at a new tariff rate,” he added, noting that the deal would create jobs and contribute to talent development.
Michael Miller, Head of Delegation of the European Union to Bangladesh praised LafargeHolcim’s role in the economy and welcomed the agreement for ensuring stable gas supply to industries. He also disclosed a €1.3 billion EU investment plan in renewable energy for Bangladesh and other partner countries.
The Swiss Ambassador commended LafargeHolcim’s contribution to Bangladesh’s economy and said the signing reflected the country’s investment potential. “I am encouraged by the interim government’s engagement with foreign nations and their commitment to easing investment procedures,” he added.
The Spanish Ambassador expressed satisfaction with Spain’s indirect investment in Bangladesh, noting that the country is now Spain’s fourth-largest export destination. “This agreement is a positive signal. Several Spanish companies are exploring investment opportunities here,” he said.
LafargeHolcim Bangladesh CEO Mohammad Iqbal Chowdhury thanked all stakeholders and reaffirmed the company’s commitment to future investment. “This deal ensures gas supply and significantly contributes to national economic growth,” he said.
Under the new agreements, JGTDSL will supply a total of 16 million standard cubic feet per day (MMSCFD) of gas to LafargeHolcim for ten years, effective from January 18, 2026. The contracts include two separate GSAs — one for industrial use and another for captive power.
The agreements were signed by Mohammad Iqbal Chowdhury on behalf of LafargeHolcim Bangladesh PLC and Jitendra Kumar Das, Company Secretary of Jalalabad Gas.