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Govt adjusts gas price upward by Tk 0.75 for power plant

BI Desk || BusinessInsider

Published: 00:24, 28 February 2024  
Govt adjusts gas price upward by Tk 0.75 for power plant

Photo: Collected

The government has raised the natural gas prices by Tk 0.75 for power plants including captives with effect from February.

A gazette notification was issued by the Ministry of Power, Energy and Mineral resources on Tuesday, reports BSS.

According to the Bangladesh Energy Regulatory Commission (BERC) Act, 2003, the government, for public interest, adjusted the selling price of gas used for power generation to Tk 14.75 from Taka 14 per cubic meter (coordination rate 5.36%) and captive power generation Tk 30.75 from Taka 30 per cubic meter (coordination rate 2.50%).

There are eight categories of gas consumers in Bangladesh, of which 37 percent of gas is used in power generation, 23 percent in industry, 18 percent in captive power, 10 percent in household use, seven percent in fertilizer production, four percent in Compressed Natural Gas (CNG) and one percent in commercial and tea industry, a ministry release said.

It said the government would have to pay a financial loss/subsidy of Tk. 6,570.54 crore in the FY 2023-24 in this sector due to the difference between production, import, supply price and selling price of natural gas.

The release said gas demand for power generation is usually increased during the agricultural irrigation season, Ramadan month and the summer.

But price adjustments remain unchanged in industrial, household, fertilizer producing, CNG, commercial and tea industries, it however, said.

As a result of the price adjustment, it may be possible to keep the subsidy at Tk 6,000 crore considering the current market price of LNG and dollar exchange rate, it added.