The energy regulator has scrapped plans to revise up gas prices and decided to subsidise imported liquefied natural gas (LNG).
A member of the Bangladesh Energy Regulatory Commission (BERC), asking not to be named, told Bangla Tribune that they will also raise the margin of gas distribution companies.
After holding public hearings, the BERC approached the government last week for hiking the prices, but it was stalled upon the prime minister’s intervention.
In March this year, gas transmission companies forwarded a proposal to increase prices by on an average 75 percent. They, however, did not propose to hike prices for household and commercial connections.
Following the proposals, the BERC held a series of public hearings over the issue in June this year.
After joining the club of liquefied natural gas (LNG) importers, Bangladesh moved to another round of gas price hike after revising it last year.
Gas prices were revised up by an average of 22.70 percent in February last year with households hit with over a 50 percent monthly rise for stoves.
The country became the first LNG-importing nation in 2018 after the first shipment arrived from Qatar on Apr 24.
According to BERC officials familiar with the matter, the inclusion of imported LNG in the national gas grid would cost an additional Tk 20 billion. But since LNG inclusion has started in the middle of the year it would cut the cost by more or less 50 percent.
They say that the government has already lifted all kind duties on LNG import, which means the PetroBangla will not have to spend much on it, which prompted the decision to subsidise the import of the energy source.