State-run Petrobangla has proposed a sharp hike in natural gas tariffs for government-owned fertiliser factories to finance increased imports of liquefied natural gas (LNG), officials said.

The company has asked the Bangladesh Energy Regulatory Commission (BERC) to raise the tariff by 150% to Tk 40 per cubic metre from Tk 16.

Proceeds from the hike would allow Petrobangla to import at least seven additional LNG cargoes annually, raising the total to 115 from 108, and ensuring a steady supply to gas-starved fertiliser factories.

“We will be able to guarantee 250 mmcfd of gas during October–March and lower volumes in other months if the hike is approved,” said AKM Mizanur Rahman, Petrobangla’s director of finance.

Even with the increase, Petrobangla expects a Tk 83.55 billion deficit, which it hopes to cover through government subsidies. The blended cost of gas would also rise to Tk 28.78 per cubic metre from Tk 24.56.

The proposal follows consultations with the Bangladesh Chemical Industries Corporation and the Ministry of Industries. Similar tariff hike requests are expected from distribution companies, including Titas, Bakhrabad, and Jalalabad Gas.

Currently, four fertiliser plants—Jamuna, Ashuganj, Chittagong Urea, and Karnaphuli—remain shut due to lack of gas, despite a combined requirement of 212 mmcfd. Fertiliser demand reached 1.56 million tonnes in FY2024-25, while the government spent US$1.04 billion on non-urea imports.

As of June, fertiliser factories owed Tk 10.39 billion to gas distributors, raising concerns over repayment even if tariffs rise.