State-owned Petrobangla has submitted a proposal to the Energy and Mineral Resources Division seeking an increase in gas prices for the power generation and compressed natural gas (CNG) sectors. However, Petrobangla Chairman Md. Abdul Mannan said the submission was primarily intended to address CNG station owners’ demand for a higher profit margin, rather than to implement an immediate gas price hike.

According to Petrobangla officials, the proposal recommends increasing the price of gas supplied to power plants from Tk 15.50 to Tk 25 per cubic metre. It also proposes raising the retail pump price of CNG used by vehicles from the current Tk 43 to around Tk 65 per cubic metre.

If approved, the gas price for electricity generation would rise by approximately 61 percent, while the retail price of CNG would increase by about 51 percent.

The proposal comes at a time when gas supplies to the national grid have been disrupted due to a fire and technical problems at the floating LNG terminal in Moheshkhali. The supply shortage has affected household cooking, reduced production in industries and power plants, and caused long queues at CNG filling stations.

Speaking to the media on Friday, Petrobangla Chairman Abdul Mannan said the issue should not be viewed simply as a proposal to increase gas prices.

He explained that CNG station owners had complained that their profit margins had remained unchanged for a long time, making their businesses less profitable. They had also threatened to go on strike, prompting Petrobangla to forward their demand to the ministry for consideration.

“I am not saying that CNG prices will definitely be increased,” Mannan said, adding that Petrobangla could formally clarify its position if necessary.

However, another Petrobangla official confirmed that a proposal covering gas price revisions for both the power generation and CNG sectors has been sent to the Energy Division.

Meanwhile, gas distribution companies—including Titas Gas, Bakhrabad Gas, Karnaphuli Gas, Jalalabad Gas, Paschimanchal Gas, and Sundarban Gas—have also sought higher distribution charges, arguing that the current tariffs are insufficient to cover their operating costs.

According to Petrobangla, the average procurement cost of domestically produced and imported gas during the 2025–26 fiscal year was Tk 31.65 per cubic metre, while the average selling price was Tk 23.63, resulting in a loss of Tk 8.02 per cubic metre. The organization reported an overall financial deficit of approximately Tk 16,500 crore, of which the government provided around Tk 14,600 crore in subsidies.

Petrobangla also noted that domestic gas production has declined significantly—from around 280 million cubic feet per day in previous years to about 165 million cubic feet per day at present. Imported LNG accounted for nearly 30 percent of the country’s total gas supply in the last fiscal year.

The agency projects that by 2030, domestic production may account for only 30 percent of total gas supply, making Bangladesh nearly 70 percent dependent on imported LNG.

Even if the Energy Division gives policy approval, the proposal cannot take effect immediately. Any change in gas prices must be formally submitted to the Bangladesh Energy Regulatory Commission (BERC), which will review the application, conduct financial assessments and a public hearing, and then make the final decision.