The Bangladesh Energy Regulatory Commission (BERC) has increased the gas tariff for fertiliser factories by Tk 13.25 per cubic metre, raising the new rate to Tk 29.25 per cubic metre. The revised price was announced on Sunday during a press briefing at the BERC office and will take effect from December. Previously, fertiliser plants were paying Tk 16 per cubic metre, marking an 82.81 percent price hike.
The decision follows the public hearing held on 6 October in response to applications submitted by Titas Gas, Bakhrabad, Jalalabad and Karnaphuli distribution companies. During the hearing, Petrobangla and the gas distribution companies proposed raising the tariff from Tk 16 to Tk 40 per cubic metre. The commission’s technical committee, however, recommended setting the price at Tk 30 per cubic metre.
Petrobangla argued that the increased tariff would allow for the import of an additional seven cargoes of LNG to supply fertiliser factories. Officials noted that the price hike would inevitably push up fertiliser production costs. At present, the production cost of urea fertiliser is around Tk 38 per kilogram, while it is sold in the market at Tk 27, requiring the government to provide a subsidy of Tk 13 per kilogram.
