Dhaka: Bangladesh Energy Regulatory Commission (BERC) today announced its commitment to ensuring a balanced gas price as it commenced a stakeholders' hearing on the pricing issue. "We will take the decision taking into account all considerations," stated BERC chairman Jalal Ahmed as the hearing began at the Bangladesh Institute of Administration and Management (BIAM) in the city's New Eskaton, focusing on re-fixing the natural gas price in the fertilizer category, where natural gas is a key ingredient.
According to Bangladesh Sangbad Sangstha, the commission highlighted the importance of considering the agriculture sector to ensure food security while also factoring in the costs associated with importing Liquefied Natural Gas (LNG). Petrobangla, a major stakeholder primarily responsible for LNG imports, has advocated for a price increase to reduce subsidies and boost import volumes. Conversely, the Bangladesh Chemical Industries Corporation (BCIC) aims to keep prices low to prevent a surge in fertilizer prices.
Petrobangla's proposal suggested that a price increase would allow for the importation of an additional seven LNG-filled cargoes for fertilizer production. Currently, Petrobangla supplies 165 million cubic feet per day (mmcfd) of natural gas to fertilizer factories, up from 130 mmcfd last month, as noted by Petrobangla Director (Operations) Engineer Rafiqul Islam.
BCIC argued that if the gas price is set at Tk.30 per unit, urea fertilizer production could reach 20 lakh tons annually, with a production cost of Tk.46 per kilogram, compared to an import cost of Tk.61 per kilogram. The Agriculture Ministry, although without a formal proposal, expressed a desire to avoid placing additional pressure on farmers. Deputy Secretary Moniruzzman emphasized the need for the Finance Ministry's input if fertilizer production costs rise, potentially requiring subsidies for farmers.
The hearing included presentations and discussions from various stakeholders, including Petrobangla Director (Finance) Mizanur Rahman, Director (Operations) Engineer Rafiqul Islam, General Manager Meherul Islam, and managing directors from Titas Gas, Karnaphuli Gas Distribution Company, and Bakhrabad Gas Distribution Company. CNG Filling Station Owners Association leader Rezabuddaulah and journalist Lutfor Rahman Kakon also participated in the sessions.