Petrobangla is preparing a proposal to increase gas prices for the power and transport sectors (CNG) as surging LNG import costs push the state-owned energy company deeper into losses and increase its dependence on government subsidies.
According to Petrobangla officials, the average cost of gas procurement rose sharply due to higher LNG prices following the Iran conflict and tensions in the Strait of Hormuz. During the April-June 2026 period, the average gas purchase cost climbed to Tk 45.79 per cubic meter, while the average selling price remained Tk 23.63, resulting in a loss of Tk 21.82 per cubic meter.
For the entire 2025-26 fiscal year, Petrobangla estimates its average procurement cost at Tk 31.65 per cubic meter, against an average selling price of Tk 23.63, creating an overall deficit of about Tk 16,500 crore. The government provided Tk 14,600 crore in subsidies during the fiscal year.
A senior Petrobangla official said the company is collecting financial data from gas distribution utilities before submitting a proposal to the Ministry of Power, Energy and Mineral Resources. After ministry approval, the proposal will be sent to the Bangladesh Energy Regulatory Commission (BERC) for consideration.
The official said Petrobangla is not seeking to make profits but aims to eliminate operating losses and gradually reduce reliance on government subsidies. Raising gas prices for power generation and transport is currently under active consideration.
Meanwhile, several gas distribution companies, including Titas Gas, Karnaphuli Gas, Jalalabad Gas, Bakhrabad Gas, Paschimanchal Gas, and Sundarban Gas, have also sought higher distribution margins, arguing that existing tariffs are insufficient to cover their operating expenses.
Petrobangla expects Bangladesh’s dependence on imported LNG to increase further as domestic gas production continues to decline. While imported gas currently accounts for about 30 percent of total supply, the share could rise to 70 percent by 2030, significantly increasing pressure on gas prices and government subsidies.
