Bangladesh has spent nearly half of its FY2026-27 budget allocation for power and LNG subsidies in just two and a half months, as soaring international energy prices drive up import costs.
The government allocated about Tk480 billion for the two sectors, of which Tk238 billion, or 49.6%, had been disbursed by September 20. The power sector received Tk138 billion, equivalent to around 37% of its Tk370 billion annual allocation.
The LNG subsidy allocation is under even greater pressure. Of the Tk110 billion budgeted for LNG imports, around Tk100 billion had already been disbursed in July and August, leaving only Tk10 billion for the rest of the fiscal year.
Officials warned that subsidy requirements could rise sharply if LNG prices remain elevated. Bangladesh has recently purchased spot LNG at nearly $30 per MMBtu, about three times the pre-Middle East conflict level.
The government had allocated Tk60 billion for LNG subsidies in FY2025-26, but actual spending rose to Tk166 billion by the end of that fiscal year.
