Bangladesh hikes gas prices for power stations again

The government has increased the prices of gas for power production by Tk 0.75 per unit of cubic metre two months after the last hike.

After the announcement of the latest hike by the Energy and Mineral Resources Division on Tuesday night, the power stations will need to pay Tk 15.50 per unit instead of Tk 14.75.

For captive power plants, gas price will be Tk 31.50 per unit instead of Tk 30.75.

The prices of gas for other users will remain unchanged.

Currently, fertiliser factories pay Tk 16 per unit for gas, industrial users Tk 30, tea estates Tk 11.93, restaurants Tk 30.50, CNG refuelling stations Tk 35, and households Tk 18.

The prices of gas for power plants were increased by Tk 0.75 for the last time in February.

The public and private power plants use 37 percent of the gas, captive power stations 18 percent, industries 23 percent, households 10 percent, fertiliser plants 7 percent, CNG refuelling stations 4 percent and commercial and tea estate users 1 percent.

The difference between the price and the cost of production, import and supply will force the government to provide the sector with more than Tk 65.7 billion in subsidies in the 2023-24 fiscal year.